Gulf stock markets were mixed on Wednesday as investors assessed a raft of corporate earnings and awaited clarity on the U.S. Federal Reserve’s leadership.
Trump said he would name a nominee to replace outgoing Fed Governor Adriana Kugler by the end of the week, and has narrowed the shortlist for Fed Chair Jerome Powell’s successor to four candidates.
Expectations of a U.S. interest rate cut strengthened after Friday’s weaker-than-expected jobs data, with traders now pricing in a 94% chance of a September cut, up from 63% at the end of July, according to CME FedWatch.
Interest rate moves by the Fed have a significant impact on the Gulf region’s monetary policy as most of its currencies are pegged to the U.S. dollar.
The Qatari benchmark index gained 0.4% to 11,326, its highest level in more than 2-1/2 years, with most stocks in positive territory. Industries Qatar rose 1.1% and AlRayan Bank advanced 2.3%.
Saudi Arabia’s benchmark stock index edged up 0.2%, lifted by a 2.1% rise in Saudi Basic Industries and a 5.4% jump in Arabian Centres after the mall operator reported a 34.2% increase in second-quarter net profit. Riyadh Cement slipped 2.8% after posting a 10.8% decline in quarterly net profit.
Dubai’s benchmark stock index slipped 0.2% as most constituents declined. Dubai Islamic Bank, the UAE’s largest Islamic lender, dropped 2.1% and Parkin Company lost 1.1%.
Gulf shares rise on Fed easing hopes; Egypt hits record high
“Markets in the UAE were under pressure as they remained exposed to price corrections after weeks of gains,” said Joseph Dahrieh, managing Principal at Tickmill.
The Abu Dhabi benchmark index was little changed as the gains in real estate, technology and energy stocks offset losses in industry, health care and telecom.
Aldar Properties climbed 3% and ADNOC Gas, advanced 1.5% after gas processing and sales company reported a 16% rise in second-quarter net profit and declared an interim dividend of $1.792 billion, a 5% increase from a year earlier.
Outside the Gulf, Egypt’s blue-chip index advanced for a fifth day and rose 0.6% to hit a fresh record high at 35,480. Telecom Egypt soared 4.8% and Fawry for Banking Technology gained 1.9%.
Meanwhile, Egypt’s net foreign reserves rose to $49.036 billion in July from $48.7 billion in June, the central bank said on Tuesday.
--------------------------------------- SAUDI ARABIA up 0.2% to 10,947 KUWAIT lost 0.3% to 9,216 QATAR rose 0.4% to 11,326 EGYPT up 0.6% to 35,480 BAHRAIN fell 0.1% to 1,946 OMAN up 0.2% to 4,809 ABU DHABI ended flat at 10,330 DUBAI lost 0.2% to 6,156 ---------------------------------------
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