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Most stock markets in the Gulf tracked Asian peers higher in early trading on Monday, after a US inflation reading last week boosted hopes of interest rate cuts from the Federal Reserve this year.
On Friday, data showed the personal consumption expenditures price index increased 0.3 per cent in April, matching the unrevised gain in March. Traders are pricing in about a 53 per cent chance of a September rate cut, versus 49 per cent before the report.
Most Gulf currencies are pegged to the dollar, and any US monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Abu Dhabi benchmark stock index (.FTFADGI) advanced 1.2 per cent, with most of its constituents posting gains.
Conglomerate International Holding Co (IHC.AD) and its unit Alpha Dhabi Holding (ALPHADHABI.AD) climbed 1.4 per cent and 4.6 per cent respectively.
Among other gainers, ADNOC Logistics (ADNOCLS.AD) known as ADNOC L&S, surged 3.7 per cent.
Energy major ADNOC’s logistics unit, ADNOC L&S, signed a deal to acquire shipping pool operator Navig8 Topco Holdings for a total value of up to $1.49 billion.
Saudi Arabia’s benchmark stock index (.TASI) was up 0.7 per cent, with most sectors in positive territory. Al Rajhi Bank (1120.SE) the world’s largest Islamic lender, gained 2 per cent and Saudi Arabian Mining (1211.SE) climbed 3.1 per cent.
Among other gainers, Saudi Aramco (2222.SE) added 0.7 per cent, bouncing back from four straight sessions of losses.
Meanwhile, Saudi Arabia’s sale of shares in oil major Aramco drew more demand than the stock on offer within hours of kicking off on Sunday, a deal that could raise up to $13.1 billion.
Dubai’s benchmark stock index (.DFMGI) was up 0.4 per cent, helped by gains in industry, finance and communications. Salik Company (SALIK.DU) rose 1.5 per cent and Commercial Bank of Dubai (CBD.DU) climbed 6.5 per cent.
The Qatari benchmark stock index (.QSI) edged up 0.2 per cent, helped by a 0.6 per cent rise in Qatar National Bank (QNBK.QA) the region’s largest lender, and a 0.9 per cent gain in Barwa Real Estate (BRES.QA).