Most Gulf stock markets closed higher today, Tuesday, amid optimism from investors after a preliminary agreement related to the US debt ceiling, which is likely to avoid the largest economy in the world from defaulting on its debt.
The agreement announced by the White House and the House of Representatives to raise the debt ceiling to more than 31.4 trillion dollars would prevent a catastrophic default on debt payments and stimulate investor appetite for risk.
The Dubai index rose 0.7 percent to 3,567 points, supported by the rise in the shares of Emaar Properties and Salik Traffic Tolls by 2.7 percent and 2 percent, respectively.
The Abu Dhabi index rose 0.8 percent to 9,484 points.
The Saudi index closed unchanged at 11,140 points.
Oil prices, a major catalyst for financial markets in the Gulf region, fell about 3 percent as concerns about the possibility of ratification of the debt ceiling agreement in the United States undermined risk appetite, while conflicting messages from major oil producers overshadowed the supply outlook ahead of their upcoming meeting days later.
However, the Qatari index fell 0.6 percent to 10,339 points, with most stocks on the index dropping, including Masraf Al Rayan, which fell 3 percent.
Georges Bavel, general manager at Capix.com, said that the Qatari stock market is still under pressure, as natural gas prices recorded more fluctuations and may decline again.
“Local stocks are witnessing lower levels of performance and increasing uncertainty regarding the direction of the market,” he added.
Outside the Gulf region, the Egyptian blue-chip index jumped 1.9 percent to 17,535 points, with the Commercial International Bank rising 1.5 percent.
Bavel said that the Egyptian stock market continues to recover, supported by buying interest from local investors, while international investors continue to sell.