By Ateeq Shariff
April 11 (Reuters) - Most stock markets in the Gulf ended higher on Tuesday, tracking a
rise in global shares as traders held onto hope that interest rates will soon peak and fall
later this year.
The Saudi bourse, however, extended losses on profit taking.
Dubai's main share index advanced 1%, buoyed by a 1.1% rise in top lender Emirates
NBD and a 1.2% increase in Dubai Electricity and Water Authority following
shareholder approval to distribute a one-time special dividend of 3.34 fils per share.
The publication of improving business conditions figures in Dubai boosted the stock market.
The local economy continued to progress month over month, providing suitable conditions for
local stocks to thrive, said Farah Mourad, senior market analyst at XTB MENA.
"As a result, the main index could test this year's peak and could record new highs."
In Abu Dhabi, the index added 0.1%. The Qatari index was up 0.4%, with
Qatar Islamic Bank rising 1%.
Oil prices - a key catalyst for the Gulf's financial markets - steadied as Chinese inflation
data pointed to persistently weak demand, but a softer dollar and hopes that the Federal Reserve
might ease up on its policy tightening after a key U.S. inflation report this week provided
support.
Saudi Arabia's benchmark index dropped 0.5%, weighed down by a 0.8% decrease in
Retal Urban Development Co and a 1.2% decline in Al Rajhi Bank .
According to Mourad, traders in the Saudi market fueled some price corrections after the
main index surpassed its previous peak.
"However, the main index could return to the upside thanks to strong local fundamentals and
a more positive sentiment among local investors."
Outside the Gulf, Egypt's blue-chip index advanced 1.4%, as most of the stocks on
the index were in positive territory including tobacco monopoly Eastern Company , which
was up 6.2%.
SAUDI ARABIA fell 0.5% to 10,849
ABU DHABI up 0.1% to 9,511
DUBAI advanced 1% to 3,444
QATAR gained 0.4% to 10,273
EGYPT leapt 1.4% to 17,012
BAHRAIN eased 0.2% to 1,881
OMAN rose 0.6% to 4,767
KUWAIT added 1.2% to 7,645
(Reporting by Ateeq Shariff in Bengaluru; Editing by Shailesh Kuber)
