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 US Federal Reserve, although other major markets were subdued on falling oil prices, reports Reuters.
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 per cent, on course to extend gains for a fourth straight session, with Alinma Bank SJSC rising 2.6 per cent and telecoms firm Etihad Etisalat Company SJSC jumping 3.1 per cent.
However, oil behemoth Saudi Aramco lost 0.5 per cent.
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 per cent, with Ooredoo QPSC advancing 1.9 per cent and Qatar Electricity and Water Company QPSC trading 2 per cent higher.
Dubai's main share index eased 0.1 per cent, hit by a 1.5 per cent fall in utility firm Dubai Electricity and Water Authority PJSC losing 1.5 per cent.
The Abu Dhabi index was down 0.1 per cent.
Oil - a key catalyst for the Gulf's financial markets - extended losses as concerns over global economic headwinds deepened, erasing the gains booked after top crude exporter Saudi Arabia's surprise weekend pledge to deepen output cuts.