Gulf bourses mixed on weaker corporate earnings, Fed rate cut hopes | Reuters

Gulf bourses mixed on weaker corporate earnings, Fed rate cut hopes | Reuters

Gulf equities closed mixed on Wednesday, with Dubai and Abu Dhabi stock markets falling, as a raft of corporate earnings weighed, while Qatar hit over two-year high after U.S. inflation data fueled bets for a September interest rate cut.

A mild July CPI report from the U.S. suggested a limited impact of tariffs on prices, reinforcing bets for the Federal Reserve rate cut in September.

Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

The Qatari benchmark index (.QSI), opens new tab jumped 1.9% to 11,635 and hit its highest level since December 2022, with almost all of its constituents posting gains.

Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, advanced 2.9% and Qatar Islamic Bank (QISB.QA), opens new tab climbed 3.8%.

"Stocks were buoyed by the positive sentiment globally as investors focused on a softer monetary policy in the U.S.," said Milad Azar, market analyst at XTB MENA.

Saudi Arabia's benchmark stock index (.TASI), opens new tab eased 0.1%, dragged down by losses in real estate, consumer staples, health care and energy shares. Al Rajhi Bank (1120.SE), opens new tab shed 0.9% and Al Nahdi Medical (4164.SE), opens new tab slid 4.8%.

Atheeb Telecom (7040.SE), opens new tab advanced 3.7%, after the telecom services provider said on Tuesday it was awarded a project by the Ministry of National Guard.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab fell for a sixth day, ending 0.1% lower. Abu Dhabi Ports (ADPORTS.AD), opens new tab dropped 3.2%, after the port operator's second-quarter profit declined 4% year-on-year, below market expectations.

Alpha Data (ALPHADATA.AD), opens new tab slipped 2.2%, as the technology services firm posted a 4.9% drop in second-quarter net profit.

Dubai's benchmark stock index (.DFMGI), opens new tab slipped 0.4%, pressured by losses in real estate, industry, utilities and finance. Tolls operator Salik (SALIK.DU), opens new tab dropped 1.9% and blue-chip developer Emaar Properties (EMAR.DU), opens new tab lost 1.7%.

Amlak Finance (AMLK.DU), opens new tab closed as the worst performer on the index, dropping 3.7%, after the real estate financier posted a second-quarter net loss on Tuesday.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down 0.4%, pressured by a 6.2% drop in Qalaa Holdings (CCAP.CA), opens new tab and a 3.1% loss in Madinet Masr (MASR.CA), opens new tab. Developer MASR posted an 11.9% decrease in half-year net profit on Tuesday.