Middle East markets close mixed, EGX surges on March 7

Gulf’s stock markets reacted mixed to US Federal Reserve Chair Jerome Powell’s remarks on monetary policy, Reuters reported on Thursday.

Egypt’s stock market soared to a record high following the IMF deal.

Powell expressed uncertainty about inflation progress while expecting a reduction in the benchmark interest rate this year. Gulf Cooperation Council’s monetary policy often aligns with the Fed’s due to currency pegs (a policy in which a national government or central bank sets a fixed exchange rate for its currency with a foreign currency or a basket of currencies and stabilizes the exchange rate between countries).

Saudi Arabia’s index slightly rose with Avalon Pharma’s strong performance. Dubai’s index fell due to Dubai Islamic Bank’s dividend impact.

Qatar’s index dropped, influenced by Industries Qatar and Ooredoo going ex-dividend.

Egypt’s index surged as Commercial International Bank rallied. Notably, Egypt’s economy stabilised with an expanded IMF deal and currency adjustments by the central bank.

Saudi Arabia (TASI) rose 0.1 per cent to 12,578.

Abu Dhabi (FTFADGI) was flat at 9,226.

Dubai (DFMGI) down 0.3 per cent to 4,237.

Qatar (QSI) dropped 0.7 per cent to 10,230.

Egypt (EGX30) rose 5.2 per cent to 31,300.

Bahrain (BAX) eased 0.2 per cent to 2,012.

Oman (MSX30) rose 0.5 per cent to 4,777.

Kuwait (BKP) was flat at 8,110.