DUBAI: Most Gulf equities rose on Monday, recovering some of the previous session’s losses due to prospects the US Federal Reserve would cut interest rates, but held back by weaker oil prices and a mixed bag of corporate earnings.
The US added fewer jobs than expected in July, with sharp downward revisions to previous months, increasing bets on a September rate cut. According to the CME FedWatch tool, the odds for a cut now stand at about 80%, up from 63.1% a week ago.
Interest rate moves by the Fed have a significant impact on the Gulf region’s monetary policy because most of its currencies are pegged to the US dollar.
The Qatari benchmark index rose 0.1%, with most stocks posting gains. The leading gainers included Commercial Bank, which rose 0.9%, and Qatar Electricity and Water with a 1% rise.
Late on Sunday, Qatar’s main electricity and desalinated water supplier QEWC reported a 2.7% increase in half-year net profit.
Dubai’s benchmark stock index gained 0.2% after two consecutive session of losses, supported by industry, utilities and finance sector shares.
Tolls operator Salik gained 1% and Gulf Navigation Holding rose for a second day, ending 5.2% higher. The maritime and shipping firm said last week it had raised its foreign ownership limit to 100% from 49%.
Saudi Arabia’s benchmark stock index snapped the previous session’s losses and edged up 0.1%. ACWA Power advanced 3.1% and Saudi Arabian Mining added 2.2%.
However, Nice One Beauty Digital Marketing slumped 10% after the e-commerce company posted a quarterly net loss compared to a net profit a year earlier.
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