Most Gulf stock markets advanced on Thursday despite mounting geopolitical tensions, as investors weighed the fallout from the US Federal Reserve’s first interest-rate hike in more than three years. Most Gulf Cooperation Council central banks raised their key rates after the Fed lifted rates by 25 basis points on Wednesday. Most Gulf currencies are pegged to the US dollar, except the Kuwaiti dinar, which is tied to a dollar-dominated currency basket. Gulf monetary policy therefore tends to track the Fed’s moves. The Saudi Central Bank, known as SAMA, raised its repo and reverse repo rates by 25 basis points to 4.50% and 4.00%, respectively. The Central Bank of the United Arab Emirates lifted the base rate on its overnight deposit facility by 25 basis points to 3.90%, while the Central Bank of Oman raised its repo rate by the same amount to 4.50%. Qatar Central Bank also increased its key rates by 25 basis points. Subdued shipping through the Strait of Hormuz continued to weigh on investor sentiment, with attention turning to US President Donald Trump’s expected meeting with Gulf leaders next week. Strong domestic fundamentals could continue to support the markets despite geopolitical pressures, said Milad Azar, a market analyst at XTB MENA. Hopes that the Fed’s move would begin to rein in inflation helped calm a global bond selloff and curb a sharp recent rise in yields. Mixed market performance Saudi Arabia’s benchmark index surrendered early gains to close flat. Saudi National Bank fell 1.3%, while Saudi Aramco lost 0.5%. Dubai’s main index gained 0.3%, helped by a 0.5% rise in Emaar Properties. Abu Dhabi climbed 0.5%, while Qatar added 0.2%. Bahrain fell 0.3% and Kuwait lost 0.4%, while Oman advanced 0.7%. Outside the Gulf, Egypt’s blue-chip index rose 1.2%, supported by a 0.6% gain in Commercial International Bank. Market closings: Saudi Arabia: Flat at 10,778 points. Abu Dhabi: Up 0.5% at 10,161 points. Dubai: Up 0.3% at 5,987 points. Qatar: Up 0.2% at 9,659 points. Egypt: Up 1.2% at 55,499 points. Bahrain: Down 0.3% at 1,924 points. Oman: Up 0.7% at 7,603 points. Kuwait: Down 0.4% at 9,244 points.
