Mideast Stocks: Gulf bourses end mixed ahead of US inflation data

Mideast Stocks: Gulf bourses end mixed ahead of US inflation data

Stock markets in the Gulf were mixed in early trade on Thursday ahead of key U.S. inflation data, which is likely to set the tone for rate cut expectations.

The Fed's preferred inflation gauge, the personal consumer expenditures (PCE) price index, is due later in the day, and investors signalled caution after dialling back bets for the first rate cut to June.

At the start of the year, wagers were on the Fed cutting rates in March. Most Gulf currencies are pegged to the dollar, and Qatar, the United Arab Emirates and Saudi Arabia usually follow any monetary policy change in the United States.

Saudi Arabia's benchmark index gained 0.2%, led by a nearly 30% surge in Avalon Pharma, rising for a third consecutive session after listing. During the first three days of trade, the Saudi Exchange allows 30% fluctuation limits.

In Abu Dhabi, the index dropped 0.3%. Abu Dhabi's bourse faced a decline today and continued to hover around its October support level. Geopolitical tensions and oil market uncertainty could continue to dampen market sentiment. Still, a potential rebound or improvement in these areas could lead to a strong recovery, said Joseph Dahrieh, Managing Principal at Tickmill.

Oil prices - a catalyst for the Gulf's financial markets - were little changed as investors kept their powder dry ahead of U.S. data expected to offer further clues on the outlook for interest rates.

Dubai's main share index added 0.4%, with sharia-compliant lender Dubai Islamic Bank rising 1.3%.

The Qatari benchmark slipped 0.1%, hit by a 1.8% fall in telecoms firm Ooredoo.

Outside the Gulf, Egypt's blue-chip index was up 0.3%, with tobacco monopoly Eastern Company advancing 6.7%.

#Dubai’s Housing Boom Prompts Emaar to Start $21 Billion Project - Bloomberg

Dubai’s Housing Boom Prompts Emaar to Start $21 Billion Project - Bloomberg

A Dubai-based developer, best known for its work on the world’s tallest tower, is splashing out 96 billion dirhams ($21 billion) to build two luxury neighborhoods in the city and capitalize on the booming real estate market.

Emaar Properties PJSC is starting sales at The Heights Country Club, an 81 million square feet development valued at 55 billion dirhams, it said in a statement. Residences are also up for grabs at Grand Club Resort, a 41-billion-dirham project that will stretch over 60 million square feet and is set to feature a wellness resort.

The firm didn’t disclose the number of homes in the new developments — that will include luxury villas and townhouses — or when it plans to finish construction. At a combined cost of $21 billion, the projects are costlier than Emaar’s signature Downtown Dubai development.

The new developments are expected to significantly enhance sales and profitability, the firm said. The company — which built the Burj Khalifa skyscraper — is among developers launching new projects in Dubai, which has emerged as one of the world’s hottest property markets.

The surge in demand has been aided by an influx of people from around the world, and has helped the city reverse a years-long slump — prices are closing in on records, despite mortgage rates hovering at the highest levels in two decades.

Earlier this month, hundreds of buyers queued overnight outside the offices of another developer, Nakheel PJSC, for a chance to buy more than 500 luxury waterfront homes. In November, about 800 homes in a new Dubai residential development sold out within hours, generating $844 million for firms backing the project, including Abu Dhabi’s Aldar Properties PJSC.

Morgan Stanley opens #AbuDhabi office, expanding Gulf presence | Reuters

Morgan Stanley opens Abu Dhabi office, expanding Gulf presence | Reuters

Morgan Stanley (MS.N), opens new tab is opening an office in Abu Dhabi, adding to its regional presence and joining a string of other global investment banks that have set up offices in the United Arab Emirates (UAE) capital.

The Wall Street bank already has offices in neighbouring Dubai, considered the Gulf's financial hub, as well as in Saudi Arabia and Qatar.

"There are exciting times ahead for the MENA (Middle East and North Africa) region and as capital markets activity continues to grow and diversify it brings new and rewarding opportunities for both regional and global investors," Clare Woodman, head of Morgan Stanley EMEA and CEO of Morgan Stanley & Co International, said in a statement on Thursday.

Global banks are increasing their presence in oil-rich Abu Dhabi to service an increasingly diverse investor pool of wealthy clients, hedge funds and alternatives that are being drawn to the capital, which is home to three sovereign wealth funds.

Last year, Goldman Sachs announced it was setting up in the Abu Dhabi's financial centre, Abu Dhabi Global Market, which itself has plans to expand significantly to support the growth of the emirate's financial industry.

#Saudi Central bank net foreign assets rise by $2bln in January

Saudi Central bank net foreign assets rise by $2bln in January

Saudi central bank net foreign assets rose by $2.07 billion in January from the previous month, central bank data showed on Wednesday.

The net foreign assets increased to 1.572 trillion riyals (419.17 billion) from 1.564 trillion riyals in December.

Net foreign assets were down 4.3% year-on-year in January.

Mideast Stocks: Major Gulf bourses mixed ahead of US inflation data

Mideast Stocks: Major Gulf bourses mixed ahead of US inflation data

Major stock markets in the Gulf were mixed in early trade on Thursday ahead of crucial U.S. inflation data that could provide fresh clues on when the Federal Reserve will cut interest rates.

The Fed's preferred inflation gauge, the personal consumer expenditures (PCE) price index, is due later in the day and investors were cautious, after dialling back bets for the first rate cut to June. At the start of the year, wages were on the Fed cutting rates in March.

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

Saudi Arabia's benchmark index edged 0.1% higher, helped by a nearly 30% surge in Avalon Pharma, rising for a third consecutive session after listing.

During the first three days of trade, the Saudi Exchange allows 30% fluctuation limits.

In Abu Dhabi, the index eased 0.1%.

Oil prices - a catalyst for the Gulf's financial markets - extended declines from the previous session after a larger-than-expected build in U.S. crude stockpiles stoked worries about slow demand, while signs that U.S. interest rates could remain elevated added to pressure.

Dubai's main share index added 0.1%, with Mashreqbank rising 4%.

The Qatari benchmark lost 0.1%, hit by a 0.5% fall in petrochemical maker Industries Qatar.