Most Gulf markets gained ahead of key US inflation data | Reuters
Most stock markets in the Gulf ended higher on Wednesday ahead of U.S. inflation data that showed price pressures still simmering, likely ensuring that the Federal Reserve will raise interest rates again next month.
After data last week showed a resilient U.S. labour market, emboldening bets of a 25 basis point hike at the Fed's next meeting in May, investors had been waiting for the inflation print, which saw the CPI increase 5.0% year on year in March, the smallest such gain since May 2021.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, leaving the region exposed to monetary tightening in the world's largest economy.
Saudi Arabia's benchmark index (.TASI) gained 0.8% after two sessions of losses, with Al Rajhi Bank (1120.SE) and oil giant Saudi Aramco (2222.SE) both closing 0.8% higher.
Oil prices - a key catalyst for the Gulf's financial markets - steadied. Clarity around oil demand and supply will come with monthly reports from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency due on Thursday and Friday, respectively.
Dubai's main share index (.DFMGI) rose 1.5% to mark a new high for the year by some margin, partly buoyed by a 3.5% jump in blue-chip developer Emaar Properties (EMAR.DU).
Analysts pointed to strong local fundamentals with Ahmed Negm, Head of Market Research MENA at XS.com, saying positive developments in local business activity could continue to support an optimistic view among investors.
Abu Dhabi's index (.FTFADGI) added 0.4%, while the Qatari benchmark (.QSI) fell 0.5%, weighed down by a 4.3% drop in Qatar Islamic Bank (QISB.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 1.6%, with most of its individual stocks in negative territory, including Egypt Kuwait Holding (EKHO.CA), which was down 8.6%.
XS.com's Negm pointed to elevated inflation and downgraded growth forecasts as factors behind the ongoing pressure on the Egyptian market.
China's Sinopec to take 5% share in Qatar's North Field East -QNA | Reuters
China's state-owned oil and gas giant Sinopec will take a 5% stake in Qatar's North Field East expansion, part of the world's largest liquefied natural gas (LNG) project, state news agency QNA reported on Wednesday.
Sinopec did not immediately respond to a Reuters request for comment.
QatarEnergy had said previously that it could give up to a 5% stake in the project to some buyers, which QatarEnergy CEO Saad al-Kaabi called "value-added partners".
Last November, Sinopec signed a deal in which QatarEnergy agreed to supply 4 million tonnes of LNG annually for 27 years, the longest LNG contract ever signed by Qatar.
At the time, Sinopec said the agreement was part of an "integrated partnership", which indicated the Chinese firm could be considering acquiring a stake in Qatar's North Field expansion export facility.
Oman's Al Ahli Bank rejects merger proposal from Bank Dhofar
Oman’s Al Ahli Bank said it has rejected the non-binding offer it received from Bank Dhofar S.A.O.G, Oman's second-largest lender by assets, exploring the possibility of a merger.
In a regulatory filing on the Muscat Stock Exchange where its shares trade, Al Ahli Bank said on Tuesday its board of directors had studied the proposal and decided not to accept it.
Mideast Stocks: Gulf bourses rise ahead of key US inflation data
Gulf stock markets rose in early trade on Wednesday ahead of a crucial U.S. inflation report that would likely influence how soon the Federal Reserve would end its aggressive interest rate hikes.
Saudi Arabia's benchmark index gained 0.2%, after two sessions of losses, helped by a 0.9% rise in Dr Sulaiman Al-Habib Medical Services.
After data showed a resilient U.S. labour market, emboldening bets of a 25 basis point hike at the Fed's next meeting in May, investor attention is firmly on the March inflation report due later in the day.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
The U.S. government will release its stockpile data at 10:30 a.m. (1430 GMT) on Wednesday.
Dubai's main share index gained 0.5%, with blue-chip developer Emaar Properties advancing 1.6%.
In Abu Dhabi, the index added 0.2%.
Oil prices - a key catalyst for the Gulf's financial markets - edged up as the market waited for U.S. inflation data.
In addition to the inflation data, the market is waiting for more clarity on oil demand and supply with monthly reports from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency due on Thursday and Friday respectively.
The Qatari index was up 0.3%, on track to extend gains from the previous session, with Ezdan Holding putting on 2.8%.
