Business
Gulf bourses mixed on weaker corporate earnings, Fed rate cut hopes
Gulf bourses mixed on weaker corporate earnings, Fed rate cut hopes
About this update from Al Rajhi Bank
By Md Manzer Hussain Gulf equities closed mixed on Wednesday, with Dubai and Abu Dhabi stock markets falling, as a raft of corporate earnings weighed, while Qatar hit over two-year high after U.S. inflation data fueled bets for a September interest rate cut.A mild July CPI report from the U.S. suggested a limited impact of tariffs on prices, reinforcing bets for the Federal Reserve rate cut in September.Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.The Qatari benchmark index QSE:GNRI jumped 1.9% to 11,635 and hit its highest level since December 2022, with almost all of its constituents posting gains.Qatar National Bank QSE:QNBK, the region's largest lender, advanced 2.9% and Qatar Islamic Bank QSE:QIBK climbed 3.8%. "Stocks were buoyed by the positive sentiment globally as investors focused on a softer monetary policy in the U.S.," said Milad Azar, market analyst at XTB MENA.Saudi Arabia's benchmark stock index TADAWUL:TASI eased 0.1%, dragged down by losses in real estate, consumer staples, health care and energy shares. Al Rajhi Bank TADAWUL:1120 shed 0.9% and Al Nahdi Medical TADAWUL:4164 slid 4.8%.Atheeb Telecom TADAWUL:7040 advanced 3.7%, after the telecom services provider said on Tuesday it was awarded a project by the Ministry of National Guard.The Abu Dhabi benchmark index ADX:FADGI fell for a sixth day, ending 0.1% lower. Abu Dhabi Ports ADX:ADPORTS dropped 3.2%, after the port operator's second-quarter profit declined 4% year-on-year, below market expectations.Alpha Data ADX:ALPHADATA slipped 2.2%, as the technology services firm posted a 4.9% drop in second-quarter net profit.Dubai's benchmark stock index DFM:DFMGI slipped 0.4%, pressured by losses in real estate, industry, utilities and finance. Tolls operator Salik DFM:SALIK dropped 1.9% and blue-chip developer Emaar Properties DFM:EMAAR lost 1.7%.Amlak Finance DFM:AMLAK closed as the worst performer on the index, dropping 3.7%, after the real estate financier posted a second-quarter net loss on Tuesday.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 was down 0.4%, pressured by a 6.2% drop in Qalaa Holdings EGX:CCAP and a 3.1% loss in Madinet Masr EGX:MASR. Developer MASR posted an 11.9% decrease in half-year net profit on Tuesday.SAUDI ARABIATADAWUL:TASI down 0.1% to 10,763KUWAIT(.BKP) up 0.7% to 9,346QATARQ...