Most Gulf equities edged higher on Tuesday amid renewed confidence in energy stocks on the back of steady oil prices, and investor optimism ahead of a widely expected U.S. Federal Reserve interest rate cut on Wednesday.
Markets have fully priced in a quarter-point rate cut from the Fed to 4.00%–4.25%, with investors closely watching policymakers' updated "dot plot" on potential future moves and guidance from Chair Jerome Powell. The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.
Saudi Arabia's benchmark stock index rebounded 0.9% from a nearly two-year low in the previous session. Shares of Fawaz Abdulaziz Al Hokair surged 10% after UAE-based Al-Futtaim completed a 2.52 billion riyal acquisition of a 49.95% stake in the retailer. ADES Holding advanced 2.3% after raising its offer to buy Oslo-listed rival Shelf Drilling, while oil giant Saudi Aramco gained 0.6%.
Crude - a key driver of Gulf economies - was firmer at $67.97 a barrel at 1221 GMT, underpinned by supply disruption risks from Ukrainian attacks on Russian energy facilities.
Dubai's main share index finished 0.7% lower, ending a three-day winning streak, dragged down by financials. Dubai Islamic Bank fell nearly 4%, while telecom monopoly Emirates Integrated Telecommunications, better known as "du", declined 4.2% after shareholder Mamoura Diversified Global Holding sold a 7.55% stake via a secondary share offering worth 3.15 billion dirhams ($858 million).
Abu Dhabi's main index rose 0.3%, marking fourth consecutive session of gains, led by energy shares. ADNOC Gas jumped nearly 2%, while ADNOC Drilling surged more than 2.5%. ADNOC Logistics climbed 2.2% following the appointment of an interim chief financial officer.
Abu Dhabi's flagship energy firm ADNOC said on Thursday it had transferred its stakes in several listed units, including ADNOC Distribution, ADNOC Drilling, ADNOC Gas, and ADNOC Logistics & Services, to its international investment arm, XRG.
Qatar's stock index rebounded 0.2%, with most sectors closing in positive territory, supported by a 0.8% increase in Qatar National Bank, the region's largest lender.
Outside the Gulf, Egypt's blue-chip index slipped 0.9%, halting a four-session advance as investors locked in profits from the recent rally, hit by a 1% drop in Commercial International Bank. The pullback appears to be a brief pause, with the upward trend likely to resume as market fundamentals seem increasingly supportive, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
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