Most Gulf markets gain as investors weigh Trump impact
4:34 am Thursday, November 07th, 2024
(Reuters) – Most stock markets in the Gulf rose in early trade on Thursday in line with Asian shares as investors mulled the implications of a Donald Trump presidency.
Trump was elected president, capping a remarkable comeback four years after he was voted out of the White House and ushering in a new American leadership likely to test democratic institutions at home and relations abroad.
Saudi Arabia’s benchmark index gained 0.4%, with Al Rajhi Bank rising 1.5%, while oil giant Saudi Aramco advanced 1.8%.
Elsewhere, Al Moammar Information Systems Co advanced 2.7%, a day after the firm signed a framework agreement worth 1.23 billion riyals ($327.42 million) with TAHAKOM to supply IT products and services.
Saudi Crown Prince Mohammed bin Salman congratulated Trump on winning the U.S. presidential election in a phone call on Wednesday, the Saudi state news agency said.
Dubai’s main share index rose 0.4%, led by a 2.3% gain in Emirates Central Cooling Systems Corp.
However, Dubai Taxi Company, the largest taxi operator in the Gulf city state by market share, declined 4.1% after reporting a slide in quarterly profit.
Investors were also eyeing U.S. Federal Reserve’s rate cut decision. The Fed is expected to cut rates by 25 basis points.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by decisions of the Federal Reserve as most regional currencies are pegged to the U.S. dollar.
In Abu Dhabi, the index eased 0.1%, hit by a 0.2% fall in conglomerate International Holding Co despite reporting a rise in third-quarter profit.
Separately, Lulu Retail Holdings said on Wednesday it had raised 6.32 billion dirhams ($1.72 billion) in its initial public offering, the UAE’s largest listing this year so far.
Qatar was closed for a public holiday.
($1 = 3.7566 riyals)
($1 = 3.6727 UAE dirham)
(Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman)
