(Reuters) – Most stocks in the Gulf ended higher on Tuesday on higher corporate earnings, though gains were limited as attention focused on the Federal Reserve’s interest rate decision.
Oil prices rose as the main catalyst for financial markets in the Gulf. Oil prices edged near their highest level in three months, the world’s second largest, after signs of supply cuts and pledges from Chinese officials to support the economy, but weak Western economic data had some negative impact.
The market’s main index rose 0.7 percent, while shares of Alinma Bank (Tadaul: ) rose 8.5 percent, after it posted a significant increase in quarterly profit.
The bank, which saw its biggest daily profit in more than three years, posted a net profit of 1.23 billion riyals (327.97 million) in the second quarter, up from 925.1 million riyals a year earlier.
Dubai’s main share index rose 0.5 percent, followed by a 1.8 percent gain in Dubai Islamic Bank ( DFM: ) and a 4.1 percent gain in Gulf Navigation Company.
fell 0.2 percent.
Most Gulf Cooperation Council countries, including the United Arab Emirates, Saudi Arabia and Qatar, have their currencies pegged to the dollar, and these countries generally follow the policy movements of the US Federal Reserve, which directly affects the region from any moves in US monetary policy.
In Egypt, the leading stock index fell 0.4 percent. Shares of most companies fell, including Eastern Company – whose stock fell 1.9 percent.
(Writing by Adeeq Sharif from Bangalore – Produced by Muhammad Harfoosh for Arabic Bulletin – Editing by Mahmoud Reda Murad)
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