Most stock markets in the Gulf closed higher today, Tuesday, supported by bets that the Federal Reserve (the US central bank) will begin cutting interest rates earlier this year. However, the index in Qatar declined due to profit-taking. The Saudi index rose by 0.7%, with shares of the National Commercial Bank, the largest bank in the kingdom, increasing by 4%. In Abu Dhabi, the index also rose by 0.1%.
Oil prices, a strong driver in Gulf financial markets, jumped more than 2% in the first session of the new year due to potential supply disruptions in the Middle East following a recent attack on a container ship in the Red Sea and hopes for Chinese demand. The main index in Dubai increased by 0.8%, supported by a 4.5% rise in shares of Salik, a traffic toll services company, and a 1.4% increase in shares of Dubai Islamic Bank.
However, the index in Qatar went against the trend, closing down more than 1% and ending an 11-session winning streak, affected by a 2.8% decline in shares of Qatar Islamic Bank.
