Saudi bourse gains on Fed rate cut signal

The Saudi Arabian stock market rose in early trade on Thursday as the US Federal Reserve Chair said he expects interest rate cuts later this year, while bourses in Dubai and Qatar were weighed down by stocks trading ex-dividend, reports Reuters.
In remarks prepared for delivery to the House Financial Services Committee, Fed Chair Jerome Powell said that continued progress on inflation "is not assured," though the central bank still expects to reduce its benchmark interest rate later this year.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy since most regional currencies are pegged to the US dollar.
Saudi Arabia's benchmark index, opens new tab gained 0.5 per cent, led by a 6.4 per cent jump in Avalon Pharma, opens new tab and a 0.5 per cent increase in Al Rajhi Bank, opens new tab.
The Kingdom raised the official selling price (OSP) for its flagship Arab Light crude to Asia in April in line with expectations, an Aramco, opens new tab statement showed on Wednesday.
However, oil giant Saudi Aramco was down 0.4 per cent on the day. Crude prices - a key catalyst for the Gulf's financial markets - eased 0.6 per cent to $82.51.
In Abu Dhabi, the benchmark index, opens new tab added 0.1 per cent.
Dubai's main share index, opens new tab dropped 0.6 per cent, dragged down by a 7.1 per cent slide in Sharia-compliant lender Dubai Islamic Bank, opens new tab as the stock went ex-dividend.