Thursday, 6 June 2024

Gulf markets end muted; #Qatar extends gain | Reuters

Gulf markets end muted; Qatar extends gain | Reuters


Most stock markets in the Gulf were subdued on Thursday as investors turned cautious ahead of crucial U.S. job data this week for further clues on the timing of rate cuts by the Federal Reserve.

Markets see a 70% chance of a September rate reduction, and have priced in about two cuts this year. Forecasters polled by Reuters also expect two cuts.

The U.S. non-farm payroll report for May due on Friday will provide more clues on the Fed's rate trajectory.

Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab eased 0.1%, after previous session gains. The conglomerate International Holding Co (IHC.AD), opens new tab shed 0.3% and First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender, slipped 1.2%

Dubai's benchmark index (.DFMGI), opens new tab fell marginally with the blue- chip developer Emaar Properties sliding 1.3%, and Taxi Company dropping 2.7%. Tolls operator Salik Company (SALIK.DU), opens new tab, however, gained 1.8%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab bounced back from two consecutive sessions of losses and rose 0.1%, supported by finance stocks. Al Rajhi Bank, the world's largest Islamic lender, rose 1.4% and Saudi Aramco added 0.4%.

Saudi Arabia's sale of shares in oil giant Aramco drew more demand than the stock on offer within hours of offer on Sunday.

The banks on the deal will take orders through Thursday and will announce final price on Friday.

Among other gainers, shares of Miahona Holding (2084.SE), opens new tab, the water and wastewater infrastructure firm, jumped 29.91% to 14.94 riyals compared to its IPO price of 11.50 riyals per share in its market debut.

The Qatari benchmark index (.QSI), opens new tab continued its upward trend for a sixth straight session, increasing by 0.4%, with broad sector gains. Qatar Islamic Bank (QISB.QA), opens new tab added 0.7% and Qatar Fuel Co (QFLS.QA), opens new tab rose 1.4%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down for a second straight session and ended 0.8% lower, with all sectors in the red.

Eastern Company(EAST.CA), opens new tab, the Egypt's largest cigarettes maker, slumped 22.1% and E-Finance for Digital (EFIH.CA), opens new tab declined 6.3%.

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