Mideast Stocks: Most Gulf shares gain on Fed easing bets; Egypt on winning streak

The Commercial Bank (P.S.Q.C.)

04/08/2025 14:55

By Md Manzer Hussain

Aug 4 (Reuters) - Most Gulf equities rose on Monday, recovering some of the previous session's losses due to prospects the U.S. Federal Reserve would cut interest rates, but held back by weaker oil prices and a mixed bag of corporate earnings.

The U.S. added fewer jobs than expected in July, with sharp downward revisions to previous months, increasing bets on a September rate cut. According to the CME FedWatch tool, the odds for a cut now stand at about 80%, up from 63.1% a week ago.

Interest rate moves by the Fed have a significant impact on the Gulf region's monetary policy because most of its currencies are pegged to the U.S. dollar.

The Qatari benchmark index .QSI rose 0.1%, with most stocks posting gains. The leading gainers included Commercial Bank COMB.QA, which rose 0.9%, and Qatar Electricity and Water QEWC.QA with a 1% rise.

Late on Sunday, Qatar's main electricity and desalinated water supplier QEWC reported a 2.7% increase in half-year net profit.

Dubai's benchmark stock index .DFMGI gained 0.2% after two consecutive session of losses, supported by industry, utilities and finance sector shares.

Tolls operator Salik SALIK.DU gained 1% and Gulf Navigation Holding GNAV.DU rose for a second day, ending 5.2% higher. The maritime and shipping firm said last week it had raised its foreign ownership limit to 100% from 49%.

Saudi Arabia's benchmark stock index .TASI snapped the previous session's losses and edged up 0.1%. ACWA Power 2082.SE advanced 3.1% and Saudi Arabian Mining 1211.SE added 2.2%.

However, Nice One Beauty Digital Marketing 4193.SE slumped 10% after the e-commerce company posted a quarterly net loss compared to a net profit a year earlier.

Among other losers, oil giant Saudi Aramco 2222.SE shed 0.4% ahead of its earnings announcement on Tuesday.

Elsewhere, oil prices - a catalyst for the Gulf's financial markets - fell to their lowest in a week after OPEC+ agreed to another large output increase in September.

Brent LCOc1 was down 2.3% at $68.06 a barrel by 1310 GMT.

The Abu Dhabi benchmark index .FTFADGI fell for the second straight session, slipping 0.2% with most sectors in the red. ADNOC Drilling ADNOCDRILL.AD lost 1% and Abu Dhabi Aviation ADAVIATION.AD dropped 1.4%.

The diversified aviation services provider, ADA posted a 79% decrease in quarterly net profit attributable to shareholders.

Outside the Gulf, Egypt's blue-chip index .EGX30 advanced for a third day and rose 1.3%, lifted by a 4.9% increase in Qala HoldingsCCAP.CA and 2.2% gain in Commercial International BankCOMI.CA.

SAUDI ARABIA
.TASI up 0.1% to 10,839
KUWAIT
.BKP lost 0.6% to 9,198
QATAR
.QSI rose 0.1% to 11,180
EGYPT
.EGX30 up 1.3% to 34,705
BAHRAIN
.BAX fell 0.1% to 1,949
OMAN
.MSX30 up 0.6% to 4,800
ABU DHABI
.FTFADGI down 0.2% to 10,299
DUBAI
.DFMGI gained 0.2% to 6,126

 (Reporting by Md Manzer Hussain;
Editing by Helen Popper)

 ((mdmanzer.hussain@thomsonreuters.com; +91 8067498453;))