By Md Manzer Hussain
March 19(Reuters) - Saudi Arabia's stock market closed
higher on Sunday to outperform the Gulf region, amid
expectations of a lower interest rate hike by the U.S. Federal
Reserve in the aftermath of the collapse of two big regional
banks.
Markets are pricing in a 25 bps increase by the U.S. Federal
Reserve when it meets next week, down from previous expectations
for a 50 bps increase.
Most Gulf currencies are pegged to the U.S. dollar, while
Saudi Arabia, the United Arab Emirates and Qatar usually mirror
U.S. monetary policy changes.
Saudi Arabia's benchmark index ended its five
sessions losing streak, jumping 1.8%, the highest intraday rise
since Dec 13.
The index was lifted by gains in all sectors, led by
banking and materials with the world's largest Islamic bank by
assets, Al Rajhi Bank climbing 3.3% and Riyad Bank surging 4.2%.
Saudi's oil giant Aramco rose 0.5%, while luxury
real estate developer Retal Urban Development gained
1.4%.
Arabian Drilling dropped 4.5% after it reported
fourth-quarter net profit of 137 million riyals ($36.47
million), a drop of 66% quarter-on-quarter. However, profit was
up 16% year-on-year.
Qatari Stock index fell marginally, extending its
decline into a sixth session with the gains in finance and
communications sectors weighed down by the losses in industry
and materials sectors.
The index heavyweight Islamic banks Qatar Islamic Bank and Masraf Al Rayan rose 1.9% and 3.2%
respectively.
But Qatar Navigation and Qatar Fuel slumped 6.5% and 2.3% respectively.
Outside the Gulf, Egypt's blue-chip index dropped
0.2%, extending its looses into a sixth sessions.
The index was dragged down by a 6.1% slide in Telecom
Egypt and 3.2% decline in Fawry Banking .
Shares of Cleopatra Hospital slipped 3.1% after
the health and medical services provider reported a 27% fall in
fourth quarter consolidated net profit.
SAUDI ARABIA rose 1.8% to 10,158
QATAR fell 0.01% to 9,909
KUWAIT added 0.2% at 7,855
BAHRAIN ended flat at 1,897
OMAN fell 0.3% to 4,872
EGYPT lost 0.2% to 14,681
($1 = 3.7560 riyals)
(Reporting by Md Manzer Hussain
Editing by Raissa Kasolowsky)
