Gulf stock markets hold steady amid low oil prices

Gulf stock markets ended mixed on Thursday as investors treaded with caution after oil prices dropped the day before, dampening sentiment for riskier asset classes.

Uncertainty weighed on regional stocks in the hours before the Bank of England’s first policy meeting since Britain voted to leave the European Union.

The Bank’s decision to hold rates steady came after Gulf bourses had closed but Riyadh and Cairo were still trading.

“There was some excitement ahead of the Bank of England meeting today as investors were expecting a rate cut,” said Vijay Harpalani, fund manager at Al Mal Capital in Dubai. “The weakness in oil prices yesterday impacted the sentiment.”

Oil prices dropped more than 3 percent on Wednesday after the International Energy Agency (IEA) cautioned that a global supply glut was threatening market recovery.

US futures declined as much as 4.4 percent to settle at $44.75 a barrel.

Abu Dhabi’s index increased marginally, led by banking stocks. Union National Bank rose 0.2 percent even after the bank, which is 50 percent owned by the Abu Dhabi government, posted a 17.3 percent drop in second-quarter net profit.

Dubai’s benchmark was down 0.4 percent, weighed by Dubai Islamic Bank. The sharia compliant lender declined 1.9 percent.

In Oman, stocks were mostly down, with the index down 0.9 percent. Oman Telecommunications fell 2.4 percent even as its second quarter profits rose 19.9 percent, Reuters calculations showed.

Qatar’s index advanced 1 per cent led by Commercial Bank of Qatar, the country’s third-largest lender by assets, which jumped 2.1 per cent.

Qatar Electricity and Water Co rose 0.6 percent after the Gulf state’s monopoly utility posted a 13.4 percent increase in second-quarter net profit, according to Reuters calculations.

Saudi Arabia’s Tadawul All-Share Index lost 0.4 percent.

THURSDAY’S HIGHLIGHTS

ABU DHABI

* The index edged up 0.06 percent to 4,576.73 points.

DUBAI

* The index slipped 0.4 percent to 3,472 points.

OMAN

* The index lost 0.9 percent to 5,860 points.

QATAR

* The index rose 1 percent to 10,428 points.

SAUDI ARABIA

* The index lost 0.4 percent to 6,662 points.

KUWAIT

* The index rose marginally by 0.09 percent to 5,390.70 points.

BAHRAIN

* The index slipped 0.1 percent to 1,172.80 points.

Source: Reuters