Most stock markets in the Gulf ended higher on Wednesday ahead of US inflation data on Thursday, although the Saudi index bucked the trend to extend losses.
The crucial event for markets this week is US consumer price index inflation data, which will be scrutinised for clues on the Federal Reserve’s future monetary policy.
Interest rate futures: are pricing around 140 basis points of US rate cuts this year. The probability of a move in March has been pared back somewhat, but still stands at 68%.
Most Gulf markets end higher; Saudi bourse falls
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.
Dubai’s main share index gained 0.3%, led by a 7.3% jump in Ajman Bank.
The Dubai bourse remained on an uptrend overall, although gains continue to be limited. The market could continue to find support thanks to the positive growth in economic activity in the emirate, said George Pavel, General Manager at Capex.com Middle East.
“The local non-oil sector continues to see a rapid pace of growth which could boost sentiment among investors,” he said.
UAE’s DP World signed $3 billion worth of memoranda of understanding with India’s Gujarat state government, the Dubai media office said in a statement.
In Abu Dhabi, the index added 0.3%.
The Qatari benchmark finished 0.3% higher, with Qatar Gas Transport advancing 2.8%.
Saudi Arabia’s benchmark index dropped 0.5%, falling for a third consecutive session, weighed down by a 1.1% fall in oil giant Saudi Aramco and a 2.3% decrease in Arabian Internet and Communication Services.
Oil - which fuels the Gulf’s economy - steadied, giving up most of its earlier gains, as Middle East supply concerns arising from the Israel-Hamas war and the shutdown of a top Libyan oilfield balanced rising US output and worries about weak economic growth.
Outside the Gulf, Egypt’s blue-chip index fell 0.4%, hit by a 1.8% fall in Commercial International Bank.
SAUDI ARABIA dropped 0.5% to 12,137
ABU DHABI added 0.3% to 9,797
DUBAI gained 0.3% to 4,130
QATAR was up 0.3% to 10,445
EGYPT lost 0.4% to 25,467
BAHRAIN added 0.1% to 1,990
OMAN was flat at 4,607
KUWAIT down 0.3% to 7,844
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