Most stock markets in the Gulf were restrained on Tuesday as oil prices fell and investors awaited signals from the U.S. Federal Reserve’s annual Jackson Hole conference later this week.
Crude prices, a catalyst for the Gulf's financial markets, slid 1.1% ahead of possible three-way talks involving Moscow, Kyiv and Washington to end the war in Ukraine, which would likely lead to the lifting of sanctions on Russian crude.
The Qatari benchmark index (.QSI), opens new tab fell 0.4%, declining for a third straight session as investors booked profits after an earnings-driven rally. Telecom company Ooredoo (ORDS.QA), opens new tab dropped 2.9% and Commercial Bank (COMB.QA), opens new tab lost 2%.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab fell marginally, extending its longest losing streak since February 2024, as declines in materials, financials and consumer discretionary stocks outweighed gains elsewhere.
Abu Dhabi Islamic Bank (ADIB.AD), opens new tab fell 1.6% and E7 Group (E7.AD), opens new tab slid 1.3%, while Pure Health Holding (PUREHEALTH.AD), opens new tab and Abu Dhabi National Energy (TAQA.AD), opens new tab rose 1.4% and 0.6%, respectively. TAQA’s unit Masdar and partners reached financial close on a roughly $1.1 billion solar project in Saudi Arabia.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was little changed, with ACWA Power (2082.SE), opens new tab up 1.3%, while oil major Saudi Aramco (2222.SE), opens new tab eased 0.3%.
Dubai's benchmark stock index (.DFMGI), opens new tab was up for a fourth straight session and rose 0.4%, with most sectors higher. Emaar Properties (EMAR.DU), opens new tab gained 1% and Dubai Electricity and Water Authority (DEWAA.DU), opens new tab added 1.1% after the state utility said it began trial operations and electricity export from the Hatta pumped-storage hydropower plant to Dubai.
Investors are awaiting the Fed’s symposium in Jackson Hole that starts on Friday; Chair Jerome Powell’s remarks will be parsed for clues on the economic outlook and monetary policy.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.8%, lifted by a 1.4% gain in Commercial International Bank (COMI.CA), opens new tab and a 2.2% rise in Fawry for Banking(FWRY.CA), opens new tab. Arabian Cement (ARCC.CA), opens new tab jumped 4.4% to a record high of 45.73 Egyptian pounds after reporting that second-quarter group profit more than tripled.
"Market was supported by healthy improvements in macroeconomic conditions and the potential for a further rate cut by (Egypt's) central bank, which meets next week", said Joseph Dahrieh, managing principal at Tickmill.
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