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CIB

Middle East Shares Mostly Rise After U.S. Hikes Rates

MidEast stocks mostly gained after the U.S. Federal Reserve raised interest rates for the first time in more than nine years, signalling that the U.S. economy is strengthening.

Gulf currencies are pegged or closely linked to the dollar and Saudi Arabia, Kuwait, Bahrain and the United Arab Emirates all swiftly raised their own rates.

Saudi Arabia's banking stocks rose as investors bet the higher rates would widen lending margin rates.

In company news, Commercial International Bank ( CIB ) agreed to sell investment banking subsidiary CI Capital to Orascom Telecom for 1 billion Egyptian pounds ($127.7 million).

Orascom Telecom plans to merge CI Capital with Beltone Financial, which it bought last month for almost 650 million Egyptian pounds.

Saudi Arabia's main index jumped 2.6% to 7,046 points, Dubai rallied 2.9% to 3,073 points, Abu Dhabi gained 2.1% to 4,148 points, Qatar firmed 0.5% to 9,913 points, Egypt rose 2.8% to 6,670 points, Kuwait eased 0.02% to 5,624 points and Oman slipped 0.05% to 5,359 points.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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