Most stock markets in the Gulf ended higher on Thursday as second-quarter earnings picked up, while optimism over U.S. interest rate cuts also cheered investor sentiment.
Investors are fully pricing in a 25-basis-point rate cut in September after Federal Reserve officials said on Wednesday the U.S. central bank was “closer” to cutting interest rates, as inflation has been easing close to its 2% target.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index reversed early losses to close 0.3% higher, with Al Rajhi Bank rising 0.8% and the country’s biggest lender Saudi National Bank increasing 1.6%.
The kingdom’s crude oil exports rose in May, after slipping in April from a nine-month high hit in March, data from the Joint Organizations Data Initiative showed on Wednesday.
Major Gulf markets mixed on US rate cut hopes, falling oil
Dubai’s main share index advanced 0.9%, led by a 1.7% rise in top lender Emirates NBD, after reporting a 13% rise in second-quarter net profit beating analyst estimates.
In Abu Dhabi, the index gained 0.6%.
Post trading hours, Abu Dhabi Commercial Bank - which was suspended for trading - posted a 20% rise in second-quarter profit on Thursday, beating analysts’ forecasts helped by higher net interest income and non-interest income.
Separately, Abu Dhabi National Hotels is considering an initial public offering for its catering business, ADNH catering, the company said in an undated statement on its website.
The Qatari benchmark declined 1.2%, as most of its constituents were in the negative territory, including utility firm Qatar Electricity and Water Company which was down 2%.
Outside the Gulf, Egypt’s blue-chip index advanced 1.1%, with El Sewedy Electric Co rising 5.3%.
======================================== SAUDI ARABIA rose 0.3% to 12,188 ABU DHABI up 0.6% to 9,226 DUBAI gained 0.9% to 4,169 QATAR dropped 1.2% to 10,034 EGYPT rose 1.1% to 28,654 BAHRAIN eased 0.3% to 1,979 OMAN added 0.1% to 4,697 KUWAIT down 0.3% to 1,979 ========================================
Comments
Comments are closed for this article.