Mideast Stocks: Gulf stock markets volatile on US debt deal, economic worries

Eastern

29/05/2023 14:32

By Ateeq Shariff
       May 29 (Reuters) - Stock markets in the Gulf ended in
different directions on Monday after U.S. lawmakers reached a
tentative agreement on the debt ceiling, while concerns about
more Federal Reserve interest rate hikes weighed on sentiment.
    U.S. President Joe Biden and House Speaker Kevin McCarthy
forged an agreement at the weekend to suspend the $31.4 trillion
debt ceiling and cap government spending for two years. Both
leaders expressed confidence that members of the Democratic and
Republican parties would vote to support the deal.
    Dubai's main share index  .DFMGI  edged 0.1% higher,
supported by a 1.2% rise in sharia-compliant lender Dubai
Islamic Bank  DISB.DU .
    In Abu Dhabi, the index  .FTFADGI  dropped 0.4%.
    The Abu Dhabi bourse remained on a downtrend as sentiment
remained cautious and energy markets were under pressure, said
Farah Mourad, senior market analyst at XTB MENA.
    "The market could see some support thanks to ADNOC Logistics
initial public offering's success. At the same time, companies
like DANA Gas  DANA.AD  could attract more foreign investors as
they open their capital to foreign ownership further," Mourad
said.
    Saudi Arabia's benchmark index  .TASI  gave up early gains
to finish flat as gains in financials were offset by losses in
healthcare shares.
    United Electronics  4003.SE  gained 3.4% after Reuters cited
two sources familiar with the matter as saying the firm was
planning an initial public offering of its Islamic consumer
finance business, Tasheel Finance.
    Among losers, oil giant Saudi Aramco  2222.SE  shed 0.6%.
    Crude prices - a key catalyst for the  Gulf's financial
markets - slipped as economic worries over further interest rate
hikes trumped the U.S. debt ceiling deal.
    Outside the Gulf, Egypt's blue-chip index  .EGX30  rose
0.5%, with tobacco monopoly Eastern Company  EAST.CA  jumping
2.7%.
        
 SAUDI ARABIA   .TASI  was flat at 11,136
 ABU DHABI      .FTFADGI  fell 0.4% to 9,412
 DUBAI          .DFMGI  added 0.1% to 3,544
 QATAR          .QSI  eased 0.2% to 10,403
 EGYPT          .EGX30  up 0.5% to 17,212
 BAHRAIN        .BAX  gained 0.2% to 1,964
 OMAN           .MSX30  rose 0.3% to 4,642
 KUWAIT         .BKP  added 0.5% to 7,547
 
 (Reporting by Ateeq Shariff in Bengaluru
Editing by Mark Potter)
 ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))