Mideast Stocks: Saudi, Qatar bourses rise in early trade, oil weighs on other markets

Mideast Stocks: Saudi, Qatar bourses rise in early trade, oil weighs on other markets

Stock markets in Saudi Arabia and Qatar rose in early trade on Wednesday ahead of a widely expected interest rate hike pause by the U.S. Federal Reserve, although other major markets were subdued on falling oil prices.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Saudi Arabia's benchmark index gained 0.4%, on course to extend gains for a fourth straight session, with Alinma Bank SJSC rising 2.6% and telecoms firm Etihad Etisalat Company SJSC jumping 3.1%.

However, oil behemoth Saudi Aramco lost 0.5%.

The kingdom's pledge to deepen output cuts is unlikely to underpin a sustainable price increase into the high $80s to low $90s, Citi said in a note on Tuesday, even as other brokerages signalled a bigger deficit in the second half of the year.

In Qatar, the benchmark added 0.3%, with Ooredoo QPSC advancing 1.9% and Qatar Electricity and Water Company QPSC trading 2% higher.

Dubai's main share index eased 0.1%, hit by a 1.5% fall in utility firm Dubai Electricity and Water Authority PJSC losing 1.5%.

The Abu Dhabi index was down 0.1%.

Oil - a key catalyst for the Gulf's financial markets