Sept 19 (Askume) – Most Gulf stock markets rose on Thursday after most of the region’s central banks cut key interest rates following the Federal Reserve’s more-than-usual easy policy.
The Federal Reserve cut its benchmark interest rate by 50 basis points on Wednesday , and policymakers are expected to cut it by another half percentage point before the end of the year.
Saudi Arabia’s benchmark index (.TASI) rose 1.3%, led by Al Rajhi Bank .(1120.SE) gained 2% .
The region’s largest economy cut its repurchase agreement rate and reverse repurchase rate by 50 basis points to 5.5% and 5%, respectively, according to a central bank statement.
Elsewhere, oil giant Saudi Aramco (2222.SE) rose 1.1%.
Oil prices rose after the Federal Reserve cut interest rates, a catalyst for Gulf financial markets , but Brent crude prices were still hovering below year’s low of $75 amid expectations of weak global demand.
Dubai’s main stock index (.DFMGI) rose 0.7%, led by a 1.2% rise in blue-chip developer Emaar Properties (EMAR.DU).
The Abu Dhabi index (.FTFADGI) rose 0.8%.
The UAE Central Bank also reduced the benchmark interest rate for overnight deposit facilities by half a percentage point to 4.90%.
Monetary policy in the Gulf Cooperation Council (GCC) generally follows Federal Reserve decisions, as most regional currencies are pegged to the US dollar.
Qatar’s benchmark index (.QSI) closed 0.6% higher, with most of its components in positive territory, led by a 2% gain in Qatar National Bank (QNBK.QA) .
Qatar’s central bank on Wednesday cut its key interest rate by 55 basis points.
Outside the Gulf, Egypt’s blue-chip index (.EGX30) rose 2%, while Egypt’s Commercial International Bank (COMI.CA) added 1.8%.
