Wednesday 20 December 2023

Major Gulf bourses end mixed on rate cut hopes, Red Sea tensions | Reuters

Major Gulf bourses end mixed on rate cut hopes, Red Sea tensions | Reuters


Major stock markets in the Gulf ended mixed on Wednesday on prospects of U.S. interest rate cuts in 2024, while worries about maritime trade disruptions in the Red Sea weighed on sentiment.

Dubai's main share index (.DFMGI) added 0.4%, with blue-chip developer Emaar Properties (EMAR.DU) rising 2.1% and top lender Emirates NBD (ENBD.DU) finishing 0.9% higher.

The Qatari benchmark (.QSI) gained 0.6%, led by a 1.4% rise in Qatar Islamic Bank (QISB.QA).

In Abu Dhabi, the index (.FTFADGI) eased 0.1%, hit by a 3.7% slide in Alpha Dhabi Holding (ALPHADHABI.AD).

Among other losers, satellite operator Yahsat (YAHSAT.AD) slipped 1.5%, while geographic data and analytics provider Bayanat (BAYANAT.AD) retreated 2.5%.

In the previous session, Yahsat was down 2.2%, whereas Bayanat added 1.4% after the firms agreed an all-share merger to create the region's first AI-powered space technology company.

However, shares in Abu Dhabi healthcare platform PureHealth Holding (PUREHEALTH.AD) closed 76.1% above their listing price on debut, after raising almost $1 billion in an initial public offering (IPO) for 10% of the business.

Saudi Arabia's benchmark index (.TASI) fell 0.1%, with Elm Co (7203.SE) losing 2.6%.

The Saudi stock market saw some downside risks as traders moved to secure their gains. The market has recorded strong gains for the past two months and remains on an uptrend overall, said George Khoury, Global Head of Education and Research at CFI.

"The volatility in oil prices and geopolitical risks could create fuel risks."

Oil prices - a catalyst for the Gulf's financial markets - continued their rise, gripped by worries about disruptions in the Red Sea after Yemen's Iran-aligned Houthi militants stepped up attacks on commercial ships.

Brent crude futures closed up more than 1% on Tuesday as some companies rerouted vessels, with longer voyages increasing the cost of transport and insurance.

Outside the Gulf, Egypt's blue-chip index (.EGX30) concluded 1% lower, as most its constituents were in negative territory including Commercial International Bank (COMI.CA).

Egypt is nearing a deal with the International Monetary Fund (IMF) to expand its $3 billion rescue programme to around $6 billion, Bloomberg News reported on Wednesday, citing people familiar with the deliberations.

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