Monday 13 February 2023

Mideast Stocks: Major Gulf bourses end mixed ahead of U.S. inflation data

Mideast Stocks: Major Gulf bourses end mixed ahead of U.S. inflation data


Major Gulf stock markets closed mixed on Monday, ahead of crucial U.S. inflation data that could influence the Federal Reserve's stance on interest rate hikes.

Oil prices - a key catalyst for the Gulf's financial markets - slipped as investors focused on short-term demand concerns ahead of the inflation data. Brent crude futures fell $0.4, or 0.51%, to $85.95 a barrel by 1136 GMT.

Saudi Arabia's benchmark index advanced 1%, lifted by solid corporate earnings and reports of a strong pipeline of IPOs. The chairman of Saudi CMA said on Sunday that 23 companies are waiting to go public on the Tadawul Exchange, subject to market conditions amid what he called a very healthy pipeline of listings.

Luxury home builder Retal Urban Development gained 1.1%, while hospital operator Sulaiman Al Habib jumped 3.3%. Riyad Bank surged 6.1% after the lender reported a 17% jump in full-year profit to 7.02 billion riyals ($1.87 billion).

Gains in heavyweight real estate and consumer sector stocks helped Dubai's benchmark stock index extend gains to the ninth session in a row as the index settled 0.5% higher. Among gainers, low-cost carrier Air Arabia jumped 3.5% ahead of reporting full-year earnings later in the day.

The Dubai stock market could come under pressure if traders move to secure their gains after last week's increase, said Farah Mourad, senior market analyst at XTB MENA.

In Abu Dhabi, the benchmark stock index dropped 0.2% to snap a 10-session winning streak, weighed down by a 0.3% decrease in conglomerate International Holding Company. Investment firm Multiply Group tumbled 4.5%.

The Qatari stock index closed 0.5% lower, falling to a seven-month low. Petrochemical maker Industries Qatar declined 3.4% after it posted a 28% decrease in its fourth-quarter net profit on Friday.

Outside the Gulf, Egypt's blue-chip index fell 0.4%, as digital payment firm Fawry For Banking Technology And Electronic Payment slipped 2.4%.

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