(Reuters) – Most major stock markets in the Gulf edged higher on Wednesday, although the gains were limited as investors await the minutes of the U.S. Federal Reserve’s latest meeting for clues on the rate outlook.
The Fed minutes, due later on Wednesday, and the non-farm payrolls report on Friday are at the top of traders’ agenda this week as they watch to see whether the Fed will need to hike more than once to stem inflation.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed’s policy moves closely, exposing the region to a direct impact from monetary tightening in the world’s largest economy.
Saudi Arabia’s benchmark index (.TASI) added 0.1%, helped by a 3.2% rise in Saudi Arabian Mining Co (1211.SE). First Milling (2283.SE) advanced more than 8% after posting higher quarterly earnings.
Separately, Saudi Arabia and Kuwait exclusively own natural wealth, including the Durra gas field, in the Gulf’s maritime “Divided Area”, Saudi state news agency SPA said on Tuesday citing the foreign ministry.
The Qatari index (.QSI) inched 0.1% higher, with Qatar National Bank (QNBK.QA), the Gulf’s biggest lender, climbing 0.8%.
In Abu Dhabi, the benchmark index (.FTFADGI) added 0.2%.
Business activity in the UAE’s non-oil sector expanded in June as new orders rose at the fastest pace in four years, according to a survey published on Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index rose to 56.9 in June, from 55.5 in May, and remained firmly above the 50 mark, which signals growth in activity.
Dubai’s main share index (.DFMGI) eased 0.3% – a day after hitting its highest since 2015 – hit by a 1.8% slide in utility Dubai Electricity and Water Authority (DEWAA.DU).
