Mideast Stocks: Most Gulf markets firm on US rate cut bets, oil strength

Commercial International Bank Egypt CIB

16/09/2025 14:21

By Amna Mariyam

Sept 16 (Reuters) - Most Gulf equities edged higher on Tuesday amid renewed confidence in energy stocks on the back of steady oil prices, and investor optimism ahead of a widely expected U.S. Federal Reserve interest rate cut on Wednesday.

Markets have fully priced in a quarter-point rate cut from the Fed to 4.00%–4.25%, with investors closely watching policymakers' updated "dot plot" on potential future moves and guidance from Chair Jerome Powell.

The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.

Saudi Arabia's benchmark stock index .TASI rebounded 0.9% from a nearly two-year low in the previous session.

Shares of Fawaz Abdulaziz Al Hokair 4240.SE surged 10% after UAE-based Al-Futtaim completed a 2.52 billion riyal acquisition of a 49.95% stake in the retailer.

ADES Holding 2382.SE advanced 2.3% after raising its offer to buy Oslo-listed rival Shelf Drilling SHLF.OL, while oil giant Saudi Aramco 2222.SE gained 0.6%.

Crude - a key driver of Gulf economies - was firmer at $67.97 a barrel at 1221 GMT, underpinned by supply disruption risks from Ukrainian attacks on Russian energy facilities.

Dubai's main share index .DFMGI finished 0.7% lower, ending a three-day winning streak, dragged down by financials.

Dubai Islamic Bank DISB.DU fell nearly 4%, while telecom monopoly Emirates Integrated Telecommunications, better known as "du" DU.DU, declined 4.2% after shareholder Mamoura Diversified Global Holding sold a 7.55% stake via a secondary share offering worth 3.15 billion dirhams ($858 million).

Abu Dhabi's main index .FTFADGI rose 0.3%, marking fourth consecutive session of gains, led by energy shares.

ADNOC Gas ADNOCGAS.AD jumped nearly 2%, while ADNOC Drilling ADNOCDRILL.AD surged more than 2.5%.

ADNOC Logistics ADNOCLS.AD climbed 2.2% following the appointment of an interim chief financial officer.

Abu Dhabi's flagship energy firm ADNOC said on Thursday it had transferred its stakes in several listed units, including ADNOC Distribution, ADNOC Drilling, ADNOC Gas, and ADNOC Logistics & Services, to its international investment arm, XRG.

Qatar's stock index .QSI rebounded 0.2%, with most sectors closing in positive territory, supported by a 0.8% increase in Qatar National Bank QNBK.QA, the region's largest lender.

Outside the Gulf, Egypt's blue-chip index .EGX30 slipped 0.9%, halting a four-session advance as investors locked in profits from the recent rally, hit by a 1% drop in Commercial International Bank COMI.CA.

The pullback appears to be a brief pause, with the upward trend likely to resume as market fundamentals seem increasingly supportive, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.

SAUDI ARABIA
.TASI jumped 0.9% to 10,519
ABU DHABI
.FTFADGI rose 0.3% to 10,064
DUBAI
.DFMGI slipped 0.7% to 6,000
QATAR
.QSI added 0.2% to 11,123
EGYPT
.EGX30 dropped 0.9% to 34,841
BAHRAIN
.BAX fell 0.2% to 1,933
OMAN
.MSX30 advanced 0.2% to 5,102
KUWAIT
.BKP finished flat at 9,444

 (Reporting by Amna Mariyam in Bengaluru
Editing by Mark Potter)