Stock markets in the Gulf put in a mixed performance on Monday as focus turned to this week’s U.S. inflation data for more clues on whether global interest rates have peaked.
Economists polled by Reuters expect U.S. headline consumer price inflation to have slowed to 3.3% in October from 3.7% in September when the data is released on Tuesday, although the core inflation rate that strips out volatile components is not expected to change.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index fell 0.4% with rental firm Lumi down by 3.3% and Etihad Atheeb Telecommunication 1.6% lower.
Foreign investors pulled a record amount of money from U.S. equity funds tracking Saudi Arabia in October as the Middle East’s worst violence in decades shook the region’s business-friendly narrative.
Gulf bourses mixed as China pessimism offsets higher oil prices
Dubai’s main share index rose 0.3%, with Mashreq Bank up 4.2%.
The Dubai bourse remains volatile and potentially exposed to the downside, said Daniel Takieddine, CEO MENA at BDSwiss.
“However, strong local fundamentals could help limit risks while the announced initial public offering of Dubai Taxi could drive up interest in the stock market and fuel a stronger rebound.”
Dubai plans to offer 25% of shares in the taxi business through an initial public offering (IPO), the company said in a statement on Monday, the latest public share sale as part of a broader privatisation programme of state assets.
In Abu Dhabi, the index eased 0.2%.
Crude oil prices - a catalyst for the Gulf’s financial markets - eased as demand worries trumped supply concerns ahead of Chinese retail sales data later in the week that may darken an outlook already dimmed by declining industrial activity in the world’s second largest economy.
The Qatari benchmark rose 0.3%, led by a 3.9% gain for Islamic lender Masraf Al Rayan.
Outside the Gulf, Egypt’s blue-chip index closed 0.2% higher, helped by a 12.4% jump in Telecom Egypt.
Egypt’s annual core inflation slowed to 38.1% in October from 39.7% in September, data from the country’s central bank showed on Sunday.
======================================== SAUDI ARABIA lost 0.4% to 10,790 ABU DHABI lost 0.2% to 9,537 DUBAI rose 0.3% to 3,983 QATAR gained 0.3% to 10,035 EGYPT rose 0.2% to 23,955 BAHRAIN was up 0.2% to 1,934 OMAN added 0.1% to 4,565 KUWAIT dropped 0.8% to 7,193 ========================================
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