Gulf bourses mixed in early trading
Stock markets in the Gulf were mixed in early trading on Monday amid steady oil prices, while investors awaited further cues on the US Federal Reserve’s interest rate outlook.
Oil prices, a catalyst for the Gulf’s financial markets, were steady as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.32 a barrel at 0740 GMT.
Dubai’s benchmark stock index rose 0.4%, helped by gains in the consumer staples, finance and industry sectors. Commercial Bank of Dubai climbed 8.8% and Parkin Company added 1.1%.
Saudi Arabia’s benchmark index was up 0.3%, supported by gains in most sectors, with Saudi National Bank , the kingdom’s largest lender, rising 1.4% and Dr Sulaiman Al Habib Medical adding 1.1%.
In Abu Dhabi, the benchmark stock index was little changed, with conglomerate Alpha Dhabi Holding and crypto mining firm Phoenix Group gaining 0.7% and 2.3% respectively, while Abu Dhabi Commercial Bank, UAE’s third-biggest lender, dropped 2.3%.
The Qatari benchmark index fell 0.5%, pressured by a 1.6% drop in Qatar National Bank, the region’s largest lender, and a 1.1% fall in United Development Co. Abu Dhabi index hits 2-year low as Gulf bourses slip on hawkish Fed minutes
Friday’s US personal consumption expenditures reading will be crucial for investors, giving them an idea of whether the Federal Reserve will be in a position to lower borrowing costs.
Most Gulf currencies are pegged to the dollar, and any US monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Most stock markets in the Gulf ended higher on Thursday, amid rising hopes for interest rate cuts by the U.S. Federal Reserve, while the Dubai index fell for a third straight session.
Milder-than-expected U.S. Consumer Price Index data for April fueled optimism that inflation was easing, prompting
the investors to raise bets that the Fed will cut its policy rate in September and December.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Saudi Arabia’s benchmark stock index bounced back after two straight sessions of losses and advanced 0.8%, with ACWA Power rising 6.2% and Saudi National Bank, the kingdom’s largest lender, adding 1.7%.
Among other gainers, MBC Group climbed 4.7% after the Middle East’s largest private media firm reported a quarterly profit. The Qatari benchmark index was up 0.8%, lifted by gains in most sectors with Qatar Navigation rising 4% and Qatar National Bank, the region’s largest lender, climbing 1.5%.
In Abu Dhabi, the benchmark index rose 0.2%, supported by a 2.2% gain in conglomerate Alpha Dhabi and a 1.7% increase in Abu Dhabi Islamic Bank.
Among other gainers, Agility Global surged 7% after the multi-business operator and investor reported a more than 300% surge in its first-quarter net profit.
Dubai’s benchmark index fell 0.2% to 4,086, its lowest level in nearly four months, pressured by losses in real estate and industry stocks.
The low-cost flyer Air Arabia slipped 1.6%, and the blue-chip developer Emaar Properties and its unit Emaar Development dropped 2.7% and 2.2% respectively.
Outside the Gulf, Egypt’s blue-chip index was up 3.3%, with all constituents posting gains, led by materials, industry, and healthcare sectors.
El Sewedy Electric jumped 8.9% and E-Finance for Digital surged 9.6% after the state-controlled payments firm posted a 64% increase in its first-quarter net profit.
Meanwhile, Egypt received $14 billion from the United Arab Emirates on Wednesday as a second payment for the development of the Ras al-Hikma peninsula, a cabinet statement said.
In Abu Dhabi, the benchmark stock index was up 0.2%, with First Abu Dhabi Bank, the UAE’s largest lender, rising 0.8% and ADNOC Drilling gaining 3.3%.