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Gulf bourses mixed in early trade ahead of Fed's decision
Gulf bourses mixed in early trade ahead of Fed's decision
About this update from Al Rajhi Bank
By Md Manzer Hussain Stock markets in the Gulf put in a mixed performance in early trade on Monday ahead of the U.S. Federal Reserve's policy decision this week, where investors expect the central bank to resume its easing cycle.Markets are 100% priced for 25 basis points of easing from the Fed, taking its key rate to 4.0-4.25%, with futures implying just a 4% chance of 50 basis points. Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.Dubai's benchmark stock index DFM:DFMGI was up 0.2%, aided by gains in consumer staples, industry and utilities shares. Gulf Navigation DFM:GULFNAV climbed 3.2% and Tecom Group DFM:TECOM gained 1.8%. Emirates Integrated Telecommunications DFM:DU known as du, slipped 1%. Telecoms firm du's shareholder Mamoura Diversified Global Holding sold a 7.55% stake in the company for 3.15 billion dirhams ($858 million) through a secondary share sale.The Abu Dhabi benchmark index ADX:FADGI advanced 0.3% as most of its constituents posted gains. Abu Dhabi Islamic Bank ADX:ADIB added 1.4% and Multiply Group ADX:MULTIPLY gained 2.1%. Space42 ADX:SPACE42, however, slipped 1%. AI-powered space-tech company Space42 and Viasat NASDAQ:VSAT have announced plans to set up Equatys, a JV aimed at enabling global Direct-to-Device (D2D) services.Saudi Arabia's benchmark stock index TADAWUL:TASI eased 0.2%, pressured by finance and healthcare stocks. Al Rajhi Bank TADAWUL:1120 slipped 1.8%, after the world's largest Islamic lender declared an interim cash dividend of SAR 0.75 per share, down 40% from SAR 1.25 per share year earlier. Fawaz Abdulaziz Al Hokair & Co TADAWUL:4240 advanced 6%. The retailer said on Sunday it has signed a 1.60 billion riyal ($426.53 million) banking facility agreement with Emirates NBD Bank – Kingdom of Saudi Arabia to prepay debts.The Qatari benchmark index QSE:GNRI was little changed with Qatar National Bank QSE:QNBK, adding 0.1% while Industries Qatar QSE:IQCD fell 0.3%.($1 = 3.7512 riyals)