Gulf shares end mixed; US Fed officials comments in focus
Major stock markets in the Gulf were mixed on Thursday amid steady oil prices, while investors awaited commentary from U.S. Federal Reserve officials to firm up bets on interest rate cuts this year.
Oil prices, a catalyst for the Gulf’s financial markets, rose 0.4% on geopolitical developments in the Middle East ahead of U.S. inventory data, with Brent trading at $85.41 a barrel by 1200 GMT.
The Qatari benchmark index was up 0.2%, extending its gains for the thirteenth session, the longest rally in nearly a year.
Maritime and logistics firm Qatar Navigation climbed 5.8%, while petrochemicals and fertilizers conglomerate Industries Qatar advanced 1.4%.
Meanwhile, energy giant QatarEnergy and Exxon Mobil, owners of a $10-billion LNG project that has stalled with the bankruptcy of its main contractor, are asking a court to immediately oust Zachry Industrial from the project.
The Abu Dhabi benchmark index slipped 0.2%, dragged down by a 1.3% drop in conglomerate International Holding Co and a 2.6% fall in Alef Education.
First Abu Dhabi Bank, the UAE’s largest lender, and Abu Dhabi Islamic Bank, gained 2.4% and 2.6%, respectively.
Dubai’s benchmark stock index fell marginally after three straight sessions of gains, with business park operator Tecom Group down 3.2% and Dubai Islamic Bank up 2%.
Investors are waiting for comments from U.S. central bank officials to get fresh cues as to when the Fed would start its policy easing cycle. Traders currently see a 66% chance of an interest rate cut by the Fed in September.
Most Gulf currencies are pegged to the dollar and any U.S. monetary policy changes are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Markets in Saudi Arabia, Oman and Egypt are closed for a holiday break.
Stock markets in the UAE closed higher on Wednesday in holiday-thinned trade after the UAE central bank projected 3.9% GDP growth for 2024 and 6.2% for 2025, while
Qatar was also boosted by a global rally.
MSCI’s All-World index was up 0.2% at 805.13, having traded at an all-time high of 805.43.
Dubai’s main share index edged up 0.1%, led by a 0.8% increase in blue-chip developer Emaar Properties and a 0.9 growth in Dubai’s largest lender Emirates NBD Bank.
In Abu Dhabi, the benchmark index rose 0.4% as its top lender First Abu Dhabi Bank gained 0.7% and Abu Dhabi Islamic Bank jumped 4.2%.
ADIB and DIFC innovation hub forged a strategic partnership to drive fintech growth in the region by implementing cutting-edge fintech solutions to accelerate innovation. The benchmark stock index in Qatar rose 0.2%, as almost all the sectors in the index were up.
Qatar National Bank, the Gulf’s biggest lender, gained 0.1% while Qatar Navigation was up 5.5%. Markets in Saudi Arabia and Egypt are closed for a long one-week holiday break.
In Abu Dhabi, the index lost 0.5%, with the country’s largest lender First Abu Dhabi Bank (FAB) falling 0.2%, while conglomerate International Holding Company slipped 1.6%, in its biggest decline since March 2023.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia, Egypt and at least three days in UAE and other Gulf countries.
Dubai’s main share index closed up 0.1%, as both bluechip developer Emaar Properties and lender Emirates NBD Bank gained 0.3%. Abu Dhabi index was down 0.3% on a weekly basis while Dubai index closed flat this week.
The Abu Dhabi benchmark index rose 0.6% with Alpha Dhabi rising 3.4% and conglomerate International Holding Co (IHC) climbing 1.2%. IHC is part of a business empire including climate fund Alterra, overseen by its chair Sheikh Tahnoon bin Zayed al-Nahyan.
Meanwhile, Brookfield Asset Management said it opened fundraising for Catalytic Transition Fund with anchor commitment from UAE-backed Altérra, targeting to raise upto $5 billion. The Qatari benchmark index rose 0.2%, extending its gain to a 10th session, the longest rally in nearly six months.