Most stock markets in the Gulf went up on Monday morning following the rise of Asian markets. This happened after a US inflation report last week gave hope that the Federal Reserve might cut interest rates this year.
Last Friday data showed that the personal consumption expenditures price index increased by 0.3% in April the same as in March.
Traders now believe there is a 53% chance of a rate cut in September up from 49% before the report.
Most Gulf currencies are tied to the US dollar so changes in US monetary policy are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Abu Dhabi stock index went up by 1.2%, with most companies seeing gains.
International Holding Co and its unit Alpha Dhabi Holding rose by 1.4% and 4.6%, respectively.
ADNOC Logistics also known as ADNOC L&S surged by 3.7%.
ADNOC L&S signed a deal to buy shipping company Navig8 Topco Holdings for up to $1.49 billion.
Saudi Arabia’s stock index rose by 0.7% with most sectors doing well. Al Rajhi Bank, the world’s largest Islamic lender gained 2% and Saudi Arabian Mining went up by 3.1%.
Saudi Aramco added 0.7% recovering from four days of losses.
Saudi Arabia’s sale of shares in Aramco drew more interest than the shares available within hours of starting on Sunday. This deal could raise up to $13.1 billion.
Dubai’s stock index rose by 0.4%, thanks to gains in industry, finance and communications.
Salik Company rose by 1.5%, and Commercial Bank of Dubai went up by 6.5%.
Qatar’s stock index edged up by 0.2% helped by a 0.6% rise in Qatar National Bank and a 0.9% gain in Barwa Real Estate.
