Most Gulf stock markets slipped on Tuesday, tracking declines in global equities as diminishing odds of an interest rate cut by the U.S. Federal Reserve weighed on sentiment, while investors awaited key government data from the world’s largest economy.
The release of delayed U.S. data following the end of a federal government shutdown, including the September non-farm payrolls report due on Thursday, will be crucial for investors assessing the chances of a rate cut next month. Traders now see a 46.4% probability of a Fed rate cut in December, down from nearly 67% a week ago.
Monetary policy shifts in the U.S. tend to heavily impact Gulf markets, where most currencies are pegged to the dollar.
The Qatari benchmark index fell for a fifth straight session, losing 1.1% to 10,683, its lowest level in nearly five months, with almost all stocks in the red.
Industries Qatar shed 1.9%, while Ooredoo slumped 6.7%, its steepest intraday fall in more than four years. The telecoms firm said on Monday that Abu Dhabi sovereign wealth fund, the Abu Dhabi Investment Authority, plans to sell about half its stake in Ooredoo through a secondary share sale that could raise as much as $572 million.
Dubai’s benchmark stock index dropped 1%, pressured by broad-based losses. Tolls operator Salik slid 1.5% and Emaar Properties fell 1.1%.
The Abu Dhabi benchmark index eased 0.3% to a near-five-month low. Blue-chip developer Aldar Properties fell 1.7%, and Two Point Zero Group declined 5% after the investment platform – created via the merger of Multiply Group, 2PointZero and Ghitha – said on Monday it would list 23.36 billion new shares via a capital increase.
Saudi Arabia’s benchmark stock index rose 0.4% after two consecutive sessions of losses. Al Rajhi Bank gained 1.3% and Retal Urban Development jumped 10%, its biggest intraday rise since listing in 2022, after the developer was awarded a 5.2 billion riyals ($1.39 billion) contract by National Housing Company to build residential units and related infrastructure in Riyadh.
Outside the Gulf, Egypt’s blue-chip index slipped 1.4%, with most stocks falling. Commercial International Bank lost 1.3% and Talaat Moustafa Group dropped 2.7%.
------------------------------------- SAUDI ARABIA up 0.4% to 11,099 KUWAIT down 0.7% to 9,342 QATAR fell 1.1% to 10,683 EGYPT down 1.4% to 40,501 BAHRAIN lost 0.4% to 2,050 OMAN fell 0.5% to 5,622 ABU DHABI down 0.3% to 9,882 DUBAI declined 1% to 5,899 ---------------------------------------------
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