Most Gulf stock markets were subdued on Monday as investors turned cautious ahead of a long-awaited U.S. jobs report that could offer clearer signals on the health of the world’s largest economy.
Following hawkish comments from U.S. Federal Reserve officials, traders now see more than a 56% chance the Fed will leave interest rates unchanged in December, compared with nearly a 94% probability of a 25-basis-point cut a month ago, according to the CME FedWatch Tool.
Monetary policy shifts in the U.S. tend to have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
The Qatari benchmark index fell 0.4%, marking its fourth straight session of losses, with most constituents in the red. Industries Qatar dropped 1.3%, while Qatar National Bank, the region’s largest lender, eased 1.1%.
The Abu Dhabi benchmark index shed 0.1%, extending its losing streak to a fourth session, with most sectors declining. Conglomerate Alpha Dhabi fell 2.4% and Abu Dhabi Commercial Bank lost 1.5%.
Abu Dhabi National Energy Co rose 3.6% after Terra-Gen, jointly owned by Taqa’s unit Masdar and Igneo Infrastructure Partners, said on Friday it had commissioned the Monte Cristo I wind power project in Texas. The project is expected to generate more than $100 million in property taxes, landowner payments and local contributions.
Gulf markets in red on fading US rate cut hopes
Saudi Arabia’s benchmark stock index traded in a narrow range, as gains in energy, real estate, communications and materials were offset by losses in most other sectors. ACWA Power slipped 1.1% and Advanced Petrochemical dropped 4.2%, while Saudi Arabian Mining Co rose 1.7%.
Saudi Aramco gained 1% after reports it would sign two U.S. liquefied natural gas supply deals with Woodside Energy and Commonwealth LNG during Crown Prince Mohammed bin Salman’s visit to Washington.
Dubai’s benchmark stock index edged up 0.1% after three consecutive sessions of losses. Tolls operator Salik advanced 1.7% and Emirates NBD, the emirate’s largest lender, added 1.2%, while Emaar Properties fell 2.2%.
Outside the Gulf, Egypt’s blue-chip index fell 0.4%, pressured by a 1.4% decline in Commercial International Bank.
-------------------------------------- SAUDI ARABIA ended flat at 11,051 KUWAIT up 0.3% to 9,408 QATAR fell 0.4% to 10,801 EGYPT down 0.4% to 41,067 BAHRAIN lost 0.1% to 2,059 OMAN fell 0.2% to 5,650 ABU DHABI down 0.1% to 9,911 DUBAI added 0.1% to 5,957 --------------------------------------
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