Most stock markets in the Gulf ended higher yesterday, amid rising hopes for interest rate cuts by the US Federal Reserve, while the Dubai index fell for a third straight session.
Milder-than-expected US consumer price index data for April fuelled optimism that inflation was easing, prompting investors to raise bets that the Fed will cut its policy rate in September and December.
Saudi Arabia’s benchmark stock index bounced back after two straight sessions of losses and advanced 0.8 per cent, with ACWA Power rising 6.2pc and Saudi National Bank, the kingdom’s largest lender, adding 1.7pc. Among other gainers, MBC Group climbed 4.7pc after the Middle East’s largest private media firm reported a quarterly profit.
The Qatari benchmark index was up 0.8pc, lifted by gains in most sectors with Qatar Navigation rising 4pc and Qatar National Bank, the region’s largest lender, climbing 1.5pc.
In Abu Dhabi, the benchmark index rose 0.2pc, supported by a 2.2pc gain in conglomerate Alpha Dhabi and a 1.7pc increase in Abu Dhabi Islamic Bank. Among other gainers, Agility Global surged 7pc after the multi-business operator and investor reported a more than 300pc surge in its first-quarter net profit.
Dubai’s benchmark index fell 0.2pc to 4,086, its lowest level in nearly four months, pressured by losses in real estate and industry stocks. The low-cost flyer Air Arabia slipped 1.6pc, and the blue-chip developer Emaar Properties and its unit Emaar Development dropped 2.7pc and 2.2pc respectively.
Outside the Gulf, Egypt’s blue-chip index was up 3.3pc, with all constituents posting gains, led by materials, industry, and healthcare sectors. El Sewedy Electric jumped 8.9pc and E-Finance for Digital surged 9.6pc after the state-controlled payments firm posted a 64pc increase in its first-quarter net profit. Meanwhile, Egypt received $14 billion from the UAE on Wednesday as a second payment for the development of the Ras Al Hikma peninsula, a cabinet statement said.
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