July 13 (Reuters) – Most major stock markets in the Gulf region rose in early trade on Thursday after US inflation and economic data raised hopes that the Federal Reserve may plan less rate hikes, despite the Saudi index bucking the trend.
Most Gulf Cooperation Council (GCC) countries, including Qatar, Saudi Arabia and the United Arab Emirates, have pegged their currencies to the US dollar and are closely monitoring the Fed’s policy moves, exposing the region to the direct impact of monetary tightening in the largest countries in the world is suspended economy.
Dubai’s main stock index (.DFMGI) rose 0.7% to hit its highest level in eight years, led by a 1.1% gain in utility company Dubai Electricity and Water Authority (DEWAA.DU).
Other gainers included Commercial Bank of Dubai (CBD.DU), which rose 3.9% after reporting a sharp rise in second-quarter earnings.
In Abu Dhabi, the index (.FTFADGI) gained 0.1%.
The Qatar benchmark (.QSI) rose 0.7% with most index constituents in positive territory, including petrochemicals maker Industries Qatar (IQCD.QA).
Oil prices – which are boosting the Gulf economy – rose after US inflation cooled and Chinese trade numbers showed monthly oil imports in June were the second-highest on record.
However, the benchmark index of Saudi Arabia (.TASI) bucked the trend, trading 0.1% lower.
Reporting by Ateeq Shariff in Bengaluru; Edited by Angus MacSwan
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