Most Gulf markets are following the oil rally…and “TASI” is in 0.6% drop

Most Gulf stock markets closed in rallied today on Monday, supported by rising oil prices, while Saudi Arabia’s ‘TASI’ fell as investor sentiment was impacted by recession fears.

Oil, a major catalyst for Gulf financial markets, rose after losing more than $2 a barrel in the previous session as optimism about the Chinese economy erased fears of a global recession.

The Abu Dhabi index rose 0.3%, continuing to climb for the third consecutive session, thanks to the increase of the First Abu Dhabi Bank, the largest bank in the country, by 1.5%, according to Reuters.

The Dubai index closed in up 0.3%, with the main stake held by Emaar Properties in increase of 1.9%.

And the Emirates News Agency said on Monday that the UAE Central Bank expects real GDP growth of 7.6% questyear, revising its forecast of an increase of more than 1%, while lowering its growth forecast for next year.

The Qatar Stock Exchange index closed in rise of 0.1%.

Daniel Taqi El-Din, CEO for the Middle East and North Africa at BD Suisse, said movements in the Qatari market have been limited relative to fluctuations in natural gas prices.

“The latter could be strongly affected by the European initiative to impose a lower price cap,” he added.

The Saudi stock market index fell 0.6%, impacted by a 3% drop in the stake of Dr. Sulaiman Al Habib Medical Services Company.

Both the Federal Reserve and the European Central Bank raised interest rates last week and promised further hikes.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, peg their currencies to the US dollar and follow the lead of the Federal Reserve in its monetary policy moves, making the region vulnerable to any monetary tightening in the largest economy.

Outside the Gulf region, the blue-chip index closed in down 0.7%, recording losses for the third consecutive session, due to profit taking.

Today is an official holiday for the Bahraini market.

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