Monday, 12 August 2024

Most Gulf markets gain ahead of US data | Reuters

Most Gulf markets gain ahead of US data | Reuters


Most stock markets in the Gulf closed higher on Monday, in line with global shares, as investors looked ahead to U.S. and Chinese economic data.

Investors were looking ahead to U.S. consumer price index data for July on Wednesday, which is expected to show month-on-month inflation ticked up to 0.2% after a minus 0.1% reading in June. Retail sales data is due on Thursday.

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 main share index (.DFMGI), opens new tab gained 0.2%, with toll operator Salik Company (SALIK.DU), opens new tab rising 1.5% and blue-chip developer Emaar Properties (EMAR.DU), opens new tab increasing 0.6%.

Among other gainers, Parkin (PARKIN.DU), opens new tab, which oversees public parking operations, advanced 2.5% after reporting a rise in quarterly profit.

The Qatari benchmark (.QSI), opens new tab added 0.2%, helped by a 0.9% increase in the Gulf's biggest lender by assets Qatar National Bank (QNBK.QA), opens new tab.

Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.3%, weighed by a 1.3% slide in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.

The Saudi stock market continued to trade sideways after a rebound. However, the market could remain exposed to the downside if US recession fears return, said Hani Abuagla Senior Market Analyst at XTB MENA.

"A stronger rebound in oil prices could drive the stock market to the upside."

Oil prices - a catalyst for the Gulf's financial markets - inched up, having bounced 3.5% last week as fears of a widening Middle East conflict threatened supplies.
In Abu Dhabi, the index (.FTFADGI), opens new tab declined 1%.

China issues figures on retail sales and industrial production on Thursday, which are expected to show the economy continuing to underperform, potentially exacerbating some investors' fears about global growth.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.6% higher, with Commercial International Bank Egypt (COMI.CA), opens new tab gaining 1.6%.

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