Gulf markets rise amid global stock rally | Reuters

Gulf markets rise amid global stock rally | Reuters

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.

#AbuDhabi's financial centre says company registrations up 31% | Reuters

Abu Dhabi's financial centre says company registrations up 31% | Reuters

The number of companies that set up base in Abu Dhabi's financial centre ADGM increased by 31% in the first half of the year as the likes of Morgan Stanley joined a slew of other financial services firms moving to the oil-rich emirate.

An economic rebound after the pandemic, a neutral political stance, and relative ease of doing business have boosted the United Arab Emirates' (UAE) appeal among businesses and wealthy individuals in recent years.

Abu Dhabi has seen banks, hedge funds, family offices, venture capital firms and crypto traders rushing to the UAE's capital as they tap into a wealthy market that is home to some of the world's biggest sovereign wealth funds such as ADIA, Mubadala and ADQ.

Some of the big names include Ray Dalio, the billionaire and founder of hedge fund Bridgewater Associates, who opened a branch of his family office in the city last year, as well as peers such as Brevan Howard.

It also attracted banks such as Goldman Sachs (GS.N), opens new tab and Rothschild, which have traditionally picked neighbouring Dubai as their regional hub, but are setting up smaller offices in the UAE's capital and Riyadh to service their clients.

Unlike global financial centres like Wall Street and London's Canary Wharf, Abu Dhabi Global Market (ADGM) and other hubs in the region have also witnessed strong demand for commercial real estate space and embarked on expansion plans.

ADGM has expanded its area of jurisdiction's footprint tenfold by adding al-Reem Island to its current location on al-Maryah Island.

It also issued 1,271 new licences in the first six months of the year, up 20.5% compared with the same period in 2023, the financial centre said on Wednesday.

ADGM said companies setting up base in the financial centre reached a total of 2,088 as of the end of June, while assets under management rose by 226% compared with the first half of last year, with 112 fund and asset managers now operating there and managing 141 funds.

Gulf shares gain on oil boost; US inflation in focus | Reuters

Gulf shares gain on oil boost; US inflation in focus | Reuters

Stock markets in the Gulf rose in early trading on Wednesday as oil prices climbed, while investors braced for a key U.S. inflation reading later in the day.

Oil prices, a catalyst for the Gulf's financial markets, rose on a drop in U.S. crude stockpiles and concerns of a possible widening of the Israel-Gaza war.

Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.5% with most sectors in the green. Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, added 1% and toll operator Salik Company (SALIK.DU), opens new tab gained 1.2%.

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.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.3%, with most of its constituents posting gains. Al Taiseer Group (4143.SE), opens new tab rose 1.8% and Middle East Pharmaceutical (4016.SE), opens new tab advanced 2.3%.

The Qatari benchmark index (.QSI), opens new tab inched up 0.1%, helped by communication, finance and materials sectors with the region's largest lender Qatar National Bank (QNBK.QA), opens new tab rising 0.7% and telecom operator Ooredoo (ORDS.QA), opens new tab adding 1%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged up 0.1%, supported by a 0.8% gain in conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab and a 2.3% rise in state-owned energy firm Abu Dhabi National Energy (TAQA.AD), opens new tab, which reported 17.7% rise in quarterly net profit.

The U.S. producer price index for final demand increased 0.1% from a month ago in evidence of waning inflation pressures.

Investors now await all-important consumer price figures for July later in the day where economists look for rises of 0.2% in both the headline and core, with the annual core slowing a tick to 3.2%.

Market expectations are evenly split between a cut of 25 basis points and 50 bps at the Federal Reserve's next meeting in September, according to the CME's FedWatch Tool. Traders are pricing in a total of 100 bps of cuts this year.

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.