Middle East markets were mixed on Thursday as investors looked past initial jitters from Israel’s strike in Qatar and priced in a potential U.S. Federal Reserve rate cut later this month, while Saudi Arabia’s main index slipped 0.4% to near a two-year low amid broad sector losses and softer oil prices.
Qatar’s benchmark index rose 0.1%, snapping a three-day losing streak, with buying concentrated in industrials. However, the gauge notched a fourth straight weekly loss, underscoring persistent pressure.
Industries Qatar gained more than 2%, ending a four-week slide as traders bargain-hunted after recent weakness.
Saudi’s main share index fell 0.2% to nearly a two-year low, with all sectors closing in the red as oil prices eased on worries over weaker U.S. demand and oversupply.
Sulaiman Al Habib slipped 2.4%, while Saudi Aramco eased 0.2%, extending recent losses after its sharpest daily decline in more than five years.
Kingdom-owned oil giant Aramco raised $3 billion in a dual-tranche Islamic bond (sukuk) sale, as the tapping debt markets to shore up its balance sheet amid softer oil prices.
Elsewhere, newly listed real estate firm Dar Al Majid fell 8.2%, extending declines since its debut.
Dubai’s main index added 0.6%, rebounding from its steepest level in nearly two months, supported by a 2.7% rise in Emirates NBD Bank as sentiment toward financials stabilised.
Abu Dhabi index gained 0.3%, halting a four-day decline, boosted by a 3.6% jump in Aldar Properties — its biggest single-day gain in nearly two months.
The bourse welcomed the primary listing of Orascom Construction , which surged 8% in its debut session. The company will maintain its secondary listing on the Egyptian Exchange.
However, the UAE markets still need further momentum to support a sustained recovery, said George Pavel, General Manager at Naga.com Middle East.
Investors continue to keep a close watch on the U.S. Federal Reserve after a benign reading on U.S. producer prices led markets to price in a greater chance of three interest rate cuts this year.
The Fed’s stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.
Outside the Gulf, Egypt’s blue-chip index trended up XX%, boosted by a 1.2% rise in Commercial International Bank , and as annual urban inflation eased to 12% in August, extending a two-year downward trend amid tight monetary policy.
The successful debut of Orascom Construction on the Abu Dhabi exchange had a positive spillover effect, contributing to sustaining momentum in the Egyptian market, Pavel added.
----------------------------------------- SAUDI ARABIA dropped 0.4% to 10,453 ABU DHABI rose 0.3% to 9,960 DUBAI climbed 0.6% to 5,957 QATAR gained 0.1% to 11,093 EGYPT added 0.8% to 34,937 BAHRAIN advanced 0.1% to 1,943 OMAN eased 0.1% to 5,082 KUWAIT fell 0.2% to 9,342 -----------------------------------------
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