Gulf stock markets rise after central banks cut key interest rates following US Fed easing

Most stock markets in the Gulf ended higher on Thursday, after most central banks in the region cut their key interest rates following a larger-than-usual policy easing by the US Federal Reserve.

The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday, with policymakers seeing another half a percentage point fall by the end of this year.

Saudi Arabia's benchmark index rose 1.3%, boosted by a 2% jump in Al Rajhi Bank.

The kingdom, the region's biggest economy, cut its repurchase agreement (Repo) rate and reverse repo rate by 50 bps each to 5.5% and 5%, respectively, according to a central bank statement.

Elsewhere, oil behemoth Saudi Aramco was up 1.1%. Oil prices - a catalyst for the Gulf's financial markets - rose after the Fed's rate cut, but Brent was still hovering around its lowest levels of the year, below $75, on expectations of weaker global demand.

Dubai's main share index added 0.7%, led by a 1.2% increase in blue-chip developer Emaar Properties.

In Abu Dhabi, the index finished 0.8% higher. The United Arab Emirates' central bank also reduced its base rate on the overnight deposit facility by half a percentage point to 4.90%.

Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most regional currencies are pegged to the US dollar.

The Qatari benchmark concluded 0.6% higher, as most of its constituents were in positive territory including Qatar National Bank, which was up 2%. Qatar's central bank cut key interest rates by 55 basis points on Wednesday.

Outside the Gulf, Egypt's blue-chip index advanced 2%, with Commercial International Bank Egypt increasing 1.8%.