March 21 (Reuters) – Most Gulf stock markets closed higher on Tuesday as fears of a global banking meltdown eased, and expectations of a lower interest rate hike by the U.S. Federal Reserve raised investors' sentiments.
Markets are pricing in a 25 bps increase by the U.S. Federal Reserve which is starting a two-day meeting later in the day, 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 (.TASI) climbed 1.4%, extending its rally to a second session. The index recorded a surge in all sectors with Kingdom's largest lender by assets Saudi National Bank (1180.SE) rising 3.4% and Riyad Bank (1010.SE) surging 3.9%.
Arabian Drilling (2381.SE) surged 3.1% after HSBC on Tuesday raised its target price to SAR 164 from SAR 157.
Shares of Perfect Presentation for Commercial Services (7204.SE) shot up 9.7%, the highest intraday rise since it went public in November 2022.
The ICT solutions provider reported on Monday a more than 63% jump in full-year net profit.
Dubai's benchmark index (.DFMGI) snapped its previous sessions losses and ended 1.1% higher. The index was lifted by gains in all sectors with tolls operator Salik (SALIK.DU) rising 2.1% and Emaar Properties (EMAR.DU) surging 3.9%.
Real estate developer Emaar announced that it will build a $60 million shopping and office complex in Srinagar, the capital of Jammu and Kashmir in India.
The emirate's largest lender Emirates NBD (ENBD.DU) gained 0.8%.
The Qatari Stock index (.QSI) rose 1%, ending its eight session losses. The index saw broad-based gains, led by the finance and energy sectors.
Qatar National Bank(QNBK.QA), the region's largest bank, and Commercial Bank (COMB.QA) climbed 2.9% and 1.5% respectively.
In Abu Dhabi, the index (.FTFADGI) fell marginally, extending previous session decline, weighed down by a 10% slump in National Marine Dredging (NMDC.AD) and a 1% drop in First Abu Dhabi Bank(FAB.AD), the United Arab Emirates' biggest lender.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 2.7%, extending previous session gains with all sectors in the positive territory.
Commercial International Bank (COMI.CA) and Fawry Banking (FWRY.CA) gained 2.1% and 5.2% respectively.
"The Egyptian stock market benefited from the improving sentiment among global investors and developments around the national IPO program", said Fadi Reyad, Chief Market Analyst at CAPEX.com MENA.
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