Wednesday, 26 June 2024

Most Gulf shares gain in early trade as oil steadies | Reuters

Most Gulf shares gain in early trade as oil steadies | Reuters

Most stock markets in the Gulf rose in early trading on Wednesday, as oil prices steadied, while investors braced for a key U.S. inflation reading later this week.

Oil prices, the main driver of the Gulf's financial markets, rose 0.3% on the possibility of an inventory drawdown and geopolitical risks in the Middle East, with Brent trading at $85.2 per barrel by 0813 GMT.

The Qatari benchmark index (.QSI), opens new tab was up 0.1%, helped by gains in utilities, finance and real estate sectors, with Qatar Islamic Bank (QISB.QA), opens new tab rising 0.8% and Qatar Electricity and Water (QEWC.QA), opens new tab adding 1%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged up 0.1%, supported by a 1.5% gain in real estate investment company Eshraq Investment (ESHRAQ.AD), opens new tab and a 0.7% rise in First Abu Dhabi Bank(FAB.AD), opens new tab, the UAE's largest lender.

Dubai's benchmark stock index (.DFMGI), opens new tab bounced back after two sessions of losses and rose 0.2% with most sectors in the green. Toll-road operator Salik Co (SALIK.DU), opens new tab gained 1.2% and National Central Cooling (TABR.DU), opens new tab advanced 2.7%.

Meanwhile, the UAE has sold bonds worth $1.5 billion at a yield of 60 basis points over U.S. Treasuries after demand exceeded $5.75 billion, an arranging bank document showed on Tuesday.

Saudi Arabia's benchmark stock index (.TASI), opens new tab fell 0.2%, pressured by losses in IT, finance, utilities and materials sectors. ADES Holding (2382.SE), opens new tab slipped 2.4% and Riyad Bank (1010.SE), opens new tab dropped 1.4%.

Investors are awaiting the U.S. personal consumption expenditures (PCE) price index - the Federal Reserve's favoured gauge of inflation - due on Friday, which could provide further clues on the Fed's rate cut trajectory.

Most Gulf currencies are pegged to the dollar and any change to the U.S. monetary policy is usually followed by the central banks of Saudi Arabia, the UAE and Qatar.

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