Most markets in Gulf track oil prices higher

Aug 21 (Reuters) – Most major stock markets in the Gulf tracked oil prices higher on Monday, although the gains were limited after China, the second-biggest economy in the world, delivered a smaller cut to lending rates than markets had counted on.

Oil prices – which fuel the Gulf economy – rose as global supply is tightening with lower exports from Saudi Arabia and Russia, offsetting nagging concerns about global demand growth amid high interest rates.

Saudi Arabia’s benchmark index (.TASI) gained 0.2%, on course to climb for a fourth consecutive session, with Banque Saudi Fransi (1050.SE) rising 1.7% and Al Rajhi Bank (1120.SE) adding 0.4%.

Separately, Japan is making preparations for a meeting of foreign ministers from Japan and the Gulf Cooperation Council (GCC) member states in Saudi Arabia in early September, Kyodo news agency said on Sunday, quoting unnamed diplomatic sources.

In Abu Dhabi, the index (.FTFADGI) added 0.1%.

Dubai’s main share index (.DFMGI) edged 0.1% higher, supported by a 0.6% gain in top lender Emirates NBD (ENBD.DU).

The Qatari bencmark (.QSI) dropped 0.4%, as most of the stocks in the index were in negative territory including Isalmic lender Masraf A Rayan (MARK.QA), which was down 1.6%.

China’s central bank trimmed its one-year lending rate by 10 basis points and left its five-year rate unmoved, a surprise to analysts who had expected cuts of 15 basis points to both.

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