Stock markets in the Gulf tracked global shares to end higher on Wednesday, after the U.S. producer price data pointed to inflation cooling, which supported speculation that the Federal Reserve could cut rates soon.
Markets are pricing in a roughly 51.5% chance of a 50 basis point rate cut, and a 48.5% chance of a 25 basis point cut, at the Fed's next meeting in September.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
Dubai's benchmark stock index (.DFMGI), opens new tab was up 0.7%, lifted by gains in most sectors with Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, rising 2.1% and toll operator Salik Company (SALIK.DU), opens new tab advancing 1.5%.
Salik said on Tuesday it will distribute all of its first half-year net profit after tax as dividend, equaling 7.263 fils per share.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab bounced back after two straight sessions of loss, rising 0.6%. The conglomerate International Holding (IHC.AD), opens new tab gained 1% and Abu Dhabi National Energy (TAQA.AD), opens new tab was up 1.5%. The state-owned energy firm TAQA reported a 17.7% rise in quarterly net profit.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up for a second consecutive session, increasing 0.5%, with most of its constituents posting gains. Al Taiseer Group (4143.SE), opens new tab climbed 6.8% and Middle East Pharmaceutical (4016.SE), opens new tab advanced 2.5%.
The Qatari benchmark index (.QSI), opens new tab advanced 0.4%, helped by communication, finance and materials sectors with the region's largest lender Qatar National Bank (QNBK.QA), opens new tab rising 1.9% and telecom operator Ooredoo (ORDS.QA), opens new tab climbing 3.9%.
However, Qatar Navigation (QNNC.QA), opens new tab slid 0.7% after the maritime and logistics firm reported on Tuesday a slight dip in half-year net profit.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.8%, with most sectors in the green. Commercial International Bank (COMI.CA), opens new tab rose 1.2%, while Misr Fertilizers Production (MFPC.CA), opens new tab surged 10.3% after it reported a 200% surge in quarterly net profit.
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