Middle East equities up ahead of earnings, Dubai pulls back from 17-year high

Middle East stock markets gained on Thursday as anticipation of strong blue-chip earnings offset signals that U.S. interest rates may remain high, while profit-taking dragged the Dubai index down from a 17-1/2 year high.

The Federal Reserve’s lack of clear guidance on when it might lower borrowing costs hampered investor sentiment in a region where monetary policy typically mirrors the U.S. due to currency pegs.

Saudi Arabia’s benchmark index gained 0.1%, driven by investor enthusiasm ahead of major earnings announcements from chemical company SABIC and oil giant Aramco due early next week.

Aramco rose 0.3%, while Bupa Arabia for Cooperative Insurance jumped 4.3% after appointing a chairman.

Elsewhere, Saudi National Bank, the kingdom’s biggest lender by assets, advanced 1.5% as investors bought stock to qualify for dividends ahead of the August 3 eligibility date.

Dubai’s main share index retreated 0.8%, snapping six straight sessions of gains as investors locked in profits following a nearly two-decade high in multiple sessions.

All sectors closed in the red, led by a 1.3% decline in blue-chip developer Emaar Properties.

The Abu Dhabi index added 0.2%, lifted by selective buying amid a mixed earnings season.

Gulf stocks gain on earnings optimism, ahead of US Fed outlook

Top lender First Abu Dhabi Bank advanced 1.7%.

Qatar’s stock index rose 1% to 11,262 riyals, a level last seen over two and a half years ago.

Qatar Islamic Bank led the rally, gaining over 3%. Brokerage HSBC lifted its price target to 29.4 riyals from 25.4 riyals.

Qatar’s Ooredoo surged 5.2%, touching a nearly 11-year peak after the telecom giant posted upbeat second-quarter earnings and held full-year outlook steady.

Outside the Gulf, Egypt’s blue-chip index jumped 1% to hit a fresh record high, led by a 1.5% gain in Talaat Moustafa Group Holding.

------------------------------------------
 SAUDI ARABIA     gained 0.1% to 10,920 
 ABU DHABI        added 0.2% to 10,371
 DUBAI            retreated 0.8% to 6,159
 QATAR            rose 1% to 11,262
 EGYPT            climbed 1% to 34,198
 BAHRAIN          was flat at 1,956
 OMAN             jumped 0.7% to 4,781
 KUWAIT           advanced 0.4% to 9,294
------------------------------------------