Most Gulf stock markets were neutral to positive in early trade on Wednesday after the US Federal Reserve indicated that it would not rush into raising interest rates and oil prices firmed slightly.

Brent crude edged up 0.4 per cent to $58.92 per barrel by 0645 GMT.

The Fed is preparing to consider interest rate hikes “on a meeting-by-meeting basis’’, its Chair Janet Yellen told a congressional committee on Tuesday.

That approach could open the door to an interest rate increase as early as June, but investors interpreted Yellen’s testimony overall as likely indicating a later date for lift-off. The Gulf’s currency pegs to the US dollar mean it would probably imitate any U.S. monetary tightening.

Dubai’s index edged up 0.2 per cent, largely because of property stocks. Emaar Properties added 0.4 per cent, DAMAC jumped 2.1 per cent, Union Properties climbed 0.9 per cent and Deyaar rose 1.3 per cent.

The real estate sector, where both companies and customers are often leveraged, is particularly sensitive to interest rate movements and a delay in US tightening would be positive for it.

Abu Dhabi property firm Aldar rose 1.5 per cent and was the main support for that emirate’s index, which climbed 0.1 per cent. Two other developers, RAK Properties and Eshraq Properties, rose 1.3 per cent each.

Qatar’s benchmark was nearly flat as Ezdan Holding dropped 3.1 per cent after announcing 2014 results and dividends. The company proposed a payout of 0.40 riyal per share, up from 0.31 riyal it paid for 2013, but some investors may have hoped for a bigger increase.

Meanwhile, Qatar Navigation (Milaha) added 0.6 per cent after the firm raised its 2014 dividend to 5.50 riyals per share from 5.00 riyals in 2013.

Oman’s index was also flat, while Kuwait edged down 0.2 per cent.

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Published on February 25, 2015