Mideast Stocks: Most Gulf markets gain on rising oil prices but focus turns to Fed

Mideast Stocks: Most Gulf markets gain on rising oil prices but focus turns to Fed

Most stock markets in the Gulf ended higher on Thursday amid rising oil prices but the gains were limited after a surprise interest rate hike by Bank of Canada brought back fears that U.S. rates could stay higher for longer. The U.S. Federal Reserve's next rate-setting meeting is on June 13-14 and investors are wary it may maintain its hawkish stance.

Oil - which fuels the Gulf's economy - rose as tighter supply resulting from Saudi Arabia's pledged production cut and a potential pause to U.S. interest rate hikes offset worries over demand weakness and a global economic slowdown. Saudi Arabia's benchmark index gained 0.2%, with Al Rajhi Bank rising 0.4% and Banque Saudi Fransi advancing 2%.

The Saudi index posted its first weekly gain of 3.5% in four weeks. Saudi Arabia's economy grew by 3.8% year-on-year in the first quarter of 2023, the General Authority for Statistics said on Thursday, broadly in line with estimates released last month. Dubai's main share index ended flat after rising for nine straight sessions.

The Dubai bourse was volatile after this month's surge as investors moved to secure their gains, said Farah Mourad, senior market analyst of XTB MENA. "As a result, the main index could