Monday, 10 June 2024

Mideast Stocks: Gulf markets end mixed; Egypt snaps losing streak

Mideast Stocks: Gulf markets end mixed; Egypt snaps losing streak


Stock markets in the Gulf put a mixed performance on Monday amid rising oil prices, while strong U.S. jobs data dampened hopes for a September rate cut by the Federal Reserve.

Oil prices, a catalyst for the Gulf's financial markets, rose 0.6% on the expectation of rising fuel demand this summer, with Brent trading at $80.07 a barrel by 1345 GMT.

The Qatari benchmark index advanced 0.4%, extending its gain to an eighth session, the longest rally in nearly six months. The index was lifted by gains in almost all sectors, with Qatar National Bank, the region's largest lender, rising 1.2% and United Development Co (UDCD )adding 1.6%. The real estate developer, UDCD's shareholders have approved sale of 40% stake in Qatar District Cooling Co.

The Abu Dhabi benchmark index was up for a second straight session and ended 0.4% higher, supported by a 9.3% rise in Purehealth and a 2.1% gain in ADNOC Distribution. Meanwhile, the oil major ADNOC said it has fully redeemed exchangeable bonds issued by ADNOC Distribution, and following full settlement in cash, ADNOC retains its 77% majority ownership in the petrol stations operator. Among other gainers, Presight Ai climbed 10.1% after the big data analytics firm has completed purchasing a 51% equity stake in Matrix Jvco from G42.

Saudi Arabia's benchmark stock index was little changed with Al Rajhi Bank, the world's largest Islamic lender, slipping 1.1% and ACWA Power dropping 3%. However, Saudi Cable advanced 5%. The cable operator said on Sunday a Jeddah court retracted its decision to accept the deposit of the financial restructuring proposal submitted by the trustee and asked it to prepare an alternative proposal.

Dubai's benchmark index eased 0.2%, dragged down by losses in most sectors. Commercial Bank of Dubai slid 5.8%. However, Drake & Scull International climbed 6.4% after the contractor reached key milestones in its financial restructuring, and now it can resume its activities, participate in new bids, and secure new projects.

After Friday's U.S. jobs data, markets dialed back expectations for the Fed to cut interest rates in September, with pricing now reflecting a less-than-50% chance of a reduction.

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

Outside the Gulf, Egypt's blue-chip index rose 0.9%, bouncing back from three straight sessions of loss with all sectors in the green. Misr Fertilizers Production advanced 5.3%, and E-Finance for Digital gained 2.7%. Separately, Egypt's annual urban consumer price inflation decreased to 28.1% in May from 32.5% in April, the statistics agency showed on Monday.

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