Mideast Stocks: Most Gulf markets rise on US rate cut prospects
02/09/2024 14:14
By Ateeq Shariff
Sept 2 (Reuters) - Most stock markets in the Gulf ended
higher on Monday as investor sentiment remained upbeat on hopes
of a September rate cut in the United States.
The Federal Reserve is expected to kick off a rate-cutting
cycle at its monetary policy meeting on Sept. 17-18.
Traders currently see a 67% chance of a 25 basis-point (bp)
reduction by the U.S central bank this month and a 33% chance of
a 50-bp cut, according to the CME FedWatch tool.
Investors await the U.S. ISM manufacturing and services
prints, along with JOLTS job openings, ADP private payrolls and
jobless claims data this week.
Focus will be on the U.S. jobs report, due on Friday, which
could be key for investors to gauge the size of potential rate
cuts by the Federal Reserve this month.
Monetary policy in the six-member Gulf Cooperation Council
(GCC), including Saudi Arabia, is usually guided by the Fed's
decisions, as most regional currencies are pegged to the U.S.
dollar.
Dubai's main share index .DFMGI gained 0.7%, led by a 3.2%
rise in blue-chip developer Emaar Properties EMAR.DU and a
1.5% increase in top lender Emirates NBD ENBD.DU .
In Abu Dhabi, the index .FTFADGI added 0.3%.
The Qatari benchmark .QSI advanced 1.1%, as most of its
constituents were in positive territory including Qatar Islamic
Bank QISB.QA , which finished 2.6% higher.
Separately, state-owned QatarEnergy will boost its
production of urea to more than 12.4 million tons annually from
6 million tons currently, its CEO said in a press conference on
Sunday, without giving a timeframe.
Saudi Arabia's benchmark index .TASI , however, eased 0.2%,
hit by a 1% fall in aluminium products manufacturer Al Taiseer
Group 4143.SE .
Outside the Gulf, Egypt's blue-chip index .EGX30 dropped
0.6%, weighed down by a 3.6% drop in EFG Holding HRHO.CA .
The Central Bank of Egypt CBE will leave overnight interest
rates unchanged when its monetary policy committee meets on
Thursday as inflation continues to decline, a poll of analysts
forecast.
SAUDI ARABIA .TASI dropped 0.2% to 12,167
ABU DHABI .FTFADGI rose 0.3% to 9,308
DUBAI .DFMGI gained 0.7% to 4,357
QATAR .QSI advanced 1.1% to 10,344
EGYPT .EGX30 lost 0.6% to 30,732
BAHRAIN .BAX eased 0.4% to 1,949
OMAN .MSX30 rose 0.3% to 4,772
KUWAIT .BKP was flat at 7,803
(Reporting by Ateeq Shariff in Bengaluru, editing by Ed Osmond)
((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))