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Gulf bourses end mixed on US rate-cut hopes, weak oil demand

Published 08/19/2024, 04:54 AM
Updated 08/19/2024, 10:42 AM
© Reuters. An electronic board displaying data is seen at the Doha Stock Exchange in Doha, Qatar January 6, 2021. REUTERS/Ibraheem Al Omari/File Photo
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By Ateeq Shariff

(Reuters) - Stock markets in the Gulf ended mixed on Monday on rising expectations of a U.S. interest rate cut next month, and amid weak oil demand.

Federal Reserve members Mary Daly and Austan Goolsbee, in interviews on Sunday, flagged the possibility of easing in September, while minutes of the last policy meeting due this week should underline the dovish outlook.

Fed Chair Jerome Powell speaks in Jackson Hole on Friday and investors assume he will acknowledge the case for a cut.

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.

Saudi Arabia's benchmark index gained 0.4%, with Al Rajhi Bank rising 1.2% and Middle East Pharmaceutical Industries closing 2.2% higher.

Separately, Saudi Arabian perfumer Al Majed For Oud plans to float a 30% stake on the local bourse, the company said on Monday, adding to a growing number of firms in the Gulf opting for a public listing.

The Qatari index finished 0.2% higher, led by a 2.8% rise in telecoms firm Ooredoo.

In Abu Dhabi, the index was up 0.2%.

Dubai's main share index eased 0.1%, hit by a 1% fall in top lender Emirates NBD.

Oil prices - a catalyst for the Gulf's financial markets - eased, with Brent holding below $80 as concern over demand in top oil importer China weighed on market sentiment.

Outside the Gulf, Egypt's blue-chip index dropped 0.5%, weighed down by a 0.9% fall in Commercial International Bank.

SAUDI ARABIA gained 0.4% to 12,023

ABU DHABI rose 0.2% to 9,305

DUBAI eased 0.1% to 4,238

QATAR gained 0.2% to 10,156

EGYPT down 0.5% to 29,320

BAHRAIN dropped 0.4% to 1,936

© Reuters. An electronic board displaying data is seen at the Doha Stock Exchange in Doha, Qatar January 6, 2021. REUTERS/Ibraheem Al Omari/File Photo

OMAN lost 0.4% to 4,673

KUWAIT down 0.1% to 7,757

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