June 4 (Reuters) – Most Gulf stock markets closed higher on Sunday after the US Congress passed a debt ceiling deal that averted a sovereign default in the world’s largest economy, amid jobs data raised hopes of a possible pause in rate hikes fed the Fed.
President Joe Biden signed legislation on Saturday suspending the US government’s $31.4 trillion debt ceiling, averting a first default in just two days.
Oil prices – a key catalyst for Gulf financial markets – rose more than 2% on Friday following the US debt deal and jobs data.
The benchmark index of Saudi Arabia (.TASI) rose 1.9%, outperforming the region, driven by a 2.5% gain in Al Rajhi Bank (1120.SE) and a rise in Riyad Bank (1010.SE) by 3.8%.
Most Gulf Cooperation Council countries, including Saudi Arabia, have pegged their currencies to the dollar and generally follow Fed policies, exposing the region to the direct impact of monetary tightening there.
In Qatar, the index (.QSI) ended 1.8% higher with almost all stocks closing in positive territory, including Qatar Islamic Bank (QISB.QA), which was up 2.1%.
Outside the Gulf, the Egyptian blue-chip index (.EGX30) slipped 0.4%, hurt by a 0.7% decline in top lender Commercial International Bank (COMI.CA).
Saudi Arabia’s Milling Company 3 (MC3) is planning an initial public offering (IPO) next year and has invited banks to bid for roles in the deal, Reuters reported Thursday, citing two sources familiar with the matter.
Reporting by Ateeq Shariff in Bengaluru; Edited by David Holmes
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