Mixed moves in Gulf stocks, eye on US inflation
Gulf stock markets showed mixed performance in early trading on Monday as traders anticipated US inflation data that could influence global rate cuts, according to Reuters.
The US Federal Reserve is expected to cut rates in June, with current predictions at a 73 per cent likelihood.
Most Gulf currencies, pegged to the dollar, typically mirror any US monetary policy changes. Therefore, decisions by the US Federal Reserve have significant implications for Saudi Arabia, the United Arab Emirates, and Qatar.
In Qatar, the benchmark index experienced a 0.2 per cent decline, led by a 4.9 per cent drop in Qatar Electricity and Water and a 4.2 per cent slide in Gulf International Services.
Saudi Arabia’s benchmark stock index saw a minor decline of 0.1 per cent, with Arabian Contracting and Elm Company recording losses of 8.5 per cent and 2.1 per cent respectively.
However, Saudi Chemical, a Saudi-based explosives manufacturer, reported a 128.1 per cent rise in full-year net profit, causing its stock to surge by 5 per cent.
In contrast, Abu Dhabi’s benchmark stock index rose by 0.1 per cent, bolstered by a 1.6 per cent increase in Aldar Properties and a 2 per cent gain in Abu Dhabi National Energy.
Dubai’s benchmark stock index also saw a rise of 0.4 per cent. Blue-chip developer Emaar Properties gained 0.9 per cent, and Emirates NBD, the Emirate’s largest lender, added 0.6 per cent.
