June 2, 2023

The Qatari stock market closed higher on Sunday, outperforming other Gulf bourses, after expectations that the US Federal Reserve would stop raising interest rates boosted investor sentiment.

The US central bank raised its key interest rate by a quarter of a percentage point on Wednesday, but indicated it would consider pausing further hikes in light of pressure on the banking system.

Most Gulf central banks followed suit and raised interest rates by a quarter of a percentage point on Wednesday, given their currencies are heavily pegged to the dollar.

The Qatari stock index rose 1.2 percent, continuing its rise for the third straight session. The index recorded gains across all sectors, with the National Bank of Qatar up 3.1 percent and the Islamic Bank of Qatar up 2.7 percent.

Other winning companies included Qatar Telecom Company Ooredoo, whose share increased by 2.7 percent, and Qatar Fuel Company, whose share increased by 1.7 percent.

The Saudi Arabian index rose 0.1 percent on gains in the materials and communications sectors.

The share of the mobile telecommunications company (Zain, Saudi Arabia) rose by 9.8 percent, to the largest increase in daily trading since October 2020, after the company announced an increase in its annual net profit of more than 157 percent.

Arab Pipe Company’s share jumped 9.5%, the highest daily increase since November 10, 2021, after the company’s annual net profit reached 8.9 million rials, compared with a loss of 60.1 million rials a year earlier.

Outside the Gulf region, the main Egyptian Stock Exchange index rose 2.3 percent, extending gains made in the previous session.

Leave a Reply

Your email address will not be published.