An investor monitors a screen displaying stock information at the Abu Dhabi Securities Exchange, June 25, 2014./File Photo Licensing Rights Acquisition
August 20 (Reuters) – The Saudi Arabian stock market closed higher on Sunday in response to Friday’s rise in oil prices, although gains were limited
as investors awaited further interest rate information from the US Federal Reserve.
The benchmark index of Saudi Arabia (.TASI) gained 0.4%, led by a 1.7% rise in petrochemicals maker Saudi Basic Industries Corp (2010.SE) and a 1% rise in Riyadh Bank (1010.SE). ,8th %.
Oil prices — a key catalyst for Gulf financial markets — rose about 1% on Friday after U.S. crude production fell, which could exacerbate expected supply shortages for the remainder of this year.
In Qatar, the index (.QSI) was up 0.1%, helped by a 1.3% gain in Commercial Bank (COMB.QA).
Investors will be watching Fed Chair Jerome Powell’s speech on Friday for clues about the outlook for interest rates.
Gulf oil and gas exporting countries tend to follow the Fed’s interest rate move as most regional currencies are pegged to the US dollar. Only the Kuwaiti dinar is pegged to a basket of currencies that includes the dollar.
Outside the Gulf, Egyptian blue-chip index (.EGX30) gained 0.4%, while tobacco monopoly Easter Company (EAST.CA) gained 2.9%.
Reporting by Ateeq Shariff in Bengaluru; Edited by David Holmes
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