Mideast Stocks: Gulf markets end mixed on rising oil prices, U.S. rate outlook

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Stock markets in the Gulf ended mixed on Thursday as rising oil prices were a positive but were offset by concerns that the U.S. Federal Reserve may still raise interest rates further.

Saudi Arabia's benchmark index reversed early losses to close 0.5% higher, snapping three sessions of losses, with oil giant Saudi Aramco advancing 1.7%.

Dubai's main share index added 0.1%, helped by a 6.5% jump in Ajman Bank.

The Dubai bourse stabilized to a certain extent after a slight decline and could return to the upside thanks to strong local fundamentals, said George Pavel, general manager at Capex.com.

"However, traders could remain cautious with uncertainty around monetary policy fuelled by the release of the Federal Reserve's minutes yesterday," he said.

In Qatar, the stock index dropped 0.9%, as most shares were in negative territory including Commercial Bank , which was down 3.1%. The minutes of the Fed's July monetary policy meeting showed most policymakers continue to prioritize the battle against inflation, adding to uncertainty among investors about the outlook for interest rates.

Most Gulf Cooperation Council countries, including Qatar, Saudi Arabia and the UAE, have their currencies pegged to the U.S. dollar and generally follow the Fed, exposing the region to a direct impact from any U.S. monetary policy moves.

Outside the Gulf, Egypt's blue-chip index fell 0.5%, with Talaat Mostafa Group Holding losing 3.6%. The Egyptian stock market continued to see pressures near this year's peak with local traders on a selling trend and trading volumes declining. As a result, the main index could be exposed to some price corrections, said Pavel.