Monday, 27 May 2024

Mideast Stocks: #Qatar index hits 7-month low as most Gulf bourses slip; #Dubai gains

Mideast Stocks: Qatar index hits 7-month low as most Gulf bourses slip; Dubai gains


Stock markets in the Gulf slipped on Monday as investors turned cautious ahead of the U.S. inflation data this week, while the Dubai index halted a three-session losing streak. The Federal Reserve's preferred measure of inflation, core personal consumption expenditures, due on Friday, will be closely watched for clues on the U.S. central bank's interest rate cut path.

Most Gulf currencies are pegged to the dollar, and any Fed action on rates is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.

The Qatari benchmark index was down for a fourth day, falling 0.7% to 9,332, its lowest level in seven months, with most constituents posting losses. Qatar National Bank, the region's largest lender, dropped 1.5% and Qatar Navigation fell 1.9%.

Saudi Arabia's benchmark stock index slipped for a third consecutive session to end 0.2% lower, with almost all sectors in the red. Riyad Bank lost 2.7% and Etihad Etisalat dropped 2%. The

Abu Dhabi benchmark index fell marginally, with conglomerate Alpha Dhabi Holding losing 1% and National Marine Dredging dropping 1.7%. Among other losers, energy major ADNOC's three units ADNOC Distribution, ADNOC Drilling, and ADNOC Logistics fell 1.1%, 1.5% and 2.2%, respectively.

Meanwhile, energy giant ADNOC announced an increase in its local manufacturing target for critical industrial products in its procurement pipeline to 90 billion dirhams ($24.5 billion) by 2030 from the previous target of 70 billion dirhams ($19 billion) by 2027 as part of its in-country value (ICV) program.

Dubai's benchmark index bounced back after three straight sessions of losses to end 0.4% higher, supported by gains in consumer staples, communications and finance. Dubai Islamic Bank advanced 3.1% and Parkin Company rose 1.9%.

Oil prices, a catalyst for the Gulf's financial markets, were up 0.9% as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.84 a barrel by 1340 GMT.

Outside the Gulf, Egypt's blue-chip index eased 0.9%, pressured by a 2.5% drop in Talaat Mostafa Group and a 5.6% fall in Sidi Kerir Petrochemicals.

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