DUBAI: Most Gulf equities tracked global stocks higher on Tuesday, as investors raised bets for interest rate cuts by the US Federal Reserve, while a few positive corporate earnings also boosted sentiment.
Expectations that the US central bank could ease monetary policy soon have risen after a weak US jobs report revived worries over the health of the world’s biggest economy.
Markets are now pricing in a 94% chance of a September rate cut, up from a 63% probability from before the data, according to CME’s FedWatch Tool.
The Fed’s decisions have a significant impact on the Gulf region’s monetary policy, as most currencies there are pegged to the US dollar.
The Qatari benchmark share index advanced 0.9% to 11,284, its highest level in more than 2-1/2 years with all stocks barring one in positive territory. Shares in Qatar National Bank, the region’s largest lender, gained 1.2% while telecom services provider Ooredoo climbed 3.5%.
Dubai’s benchmark stock index was up 0.7%, with all of its constituents rising. Emirates NBD, the emirate’s largest lender, rose 1.9% and tolls operator Salik Company added 1.6%.
Elsewhere, Dubai’s non-oil sector showed a solid recovery, with its PMI rising to 53.5 in July from 51.8 in June, driven by a sharper improvement in sales volumes.
Saudi Arabia’s benchmark stock index was up 0.8%, lifted by a 3.1% rise in Saudi Basic Industries while ADES Holding surged 10%, its highest intraday percentage gain since listing in 2023.
Oil drilling group ADES has agreed to buy Oslo-listed rival Shelf Drilling for 3.9 billion Norwegian crowns ($379 million) in cash.
Among other gainers, Lumi Rental rose 3.5% after the auto rental firm posted a 17.8% increase in second quarter net profit.