Major stock markets in the Gulf diverged on Tuesday as investors awaited US inflation data for clues on the timing of interest rate cuts.
Data on Friday showed US employers hired more workers than expected in December, dousing expectations of a rapid easing of interest rates and leading market participants to shift attention to US inflation data due on Thursday for more clarity on the trajectory of borrowing costs.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the US dollar.
Most Gulf markets end higher; Saudi bourse falls
Saudi Arabia’s benchmark index lost 0.4%, hit by a 3.7% fall for Etihad Atheeb Telecommunication while oil giant Saudi Aramco gained 0.6%.
Saudi Arabia National Debt Management Centre completed the first issuance of US dollar international bonds in 2024, worth $12 billion, it said in a statement. The $12 billion was via a triple-tranche offering.
Dubai’s main share index gained 0.7%, led by a 1% rise for blue-chip developer Emaar Properties and a 1.6% gain for Dubai Electricity and Water Authority.
The Dubai stock market continued to climb in small increments. The market could encounter resistance near current levels, said Daniel Takieddine, CEO MENA at BDSwiss, adding that strong local fundamentals could offer market support.
In Abu Dhabi, the index closed 0.6% up.
The Qatari benchmark fell 0.6%, with Qatar Islamic Bank down 1.3% and Qatar National Bank declining by 0.9%.
Outside the Gulf, Egypt’s blue-chip index edged up by 0.1%, with Abu Qir Fertilizers and Chemical Industries jumping 3.3%.
Egypt’s inflation rate probably fell for a third straight month in December on lower food prices but could rebound in coming months after recent government price increases and a possible currency devaluation, a Reuters poll showed on Monday.
SAUDI ARABIA eased 0.4% to 12,198
ABU DHABI rose 0.6% to 9,767
DUBAI gained 0.7% to 4,118
QATAR dropped 0.6% to 10,417
EGYPT climbed 1% to 25,590
BAHRAIN was up 0.2% to 1,987
OMAN added 0.1% to 4,607
KUWAIT advanced 1% to 7,867
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