Business
Gulf bourses track global selloff as Fed rate cut hopes fade
Gulf bourses track global selloff as Fed rate cut hopes fade
About this update from Al Rajhi Bank
By Md Manzer Hussain Most Gulf stock markets slipped on Tuesday, tracking declines in global equities as diminishing odds of an interest rate cut by the U.S. Federal Reserve weighed on sentiment, while investors awaited key government data from the world's largest economy.The release of delayed U.S. data following the end of a federal government shutdown, including the September non-farm payrolls report due on Thursday, will be crucial for investors assessing the chances of a rate cut next month. Traders now see a 46.4% probability of a Fed rate cut in December, down from nearly 67% a week ago.Monetary policy shifts in the U.S. tend to heavily impact Gulf markets, where most currencies are pegged to the dollar.The Qatari benchmark index QSE:GNRI fell for a fifth straight session, losing 1.1% to 10,683, its lowest level in nearly five months, with almost all stocks in the red. Industries Qatar QSE:IQCD shed 1.9%, while Ooredoo QSE:ORDS slumped 6.7%, its steepest intraday fall in more than four years. The telecoms firm said on Monday that Abu Dhabi sovereign wealth fund, the Abu Dhabi Investment Authority, plans to sell about half its stake in Ooredoo through a secondary share sale that could raise as much as $572 million.Dubai's benchmark stock index DFM:DFMGI dropped 1%, pressured by broad-based losses. Tolls operator Salik DFM:SALIK slid 1.5% and Emaar Properties DFM:EMAAR fell 1.1%.The Abu Dhabi benchmark index ADX:FADGI eased 0.3% to a near-five-month low. Blue-chip developer Aldar Properties ADX:ALDAR fell 1.7%, and Two Point Zero Group ADX:2POINTZERO declined 5% after the investment platform – created via the merger of Multiply Group, 2PointZero and Ghitha – said on Monday it would list 23.36 billion new shares via a capital increase.Saudi Arabia's benchmark stock index TADAWUL:TASI rose 0.4% after two consecutive sessions of losses. Al Rajhi Bank TADAWUL:1120 gained 1.3% and Retal Urban Development TADAWUL:4322 jumped 10%, its biggest intraday rise since listing in 2022, after the developer was awarded a 5.2 billion riyals ($1.39 billion) contract by National Housing Company to build residential units and related infrastructure in Riyadh.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 slipped 1.4%, with most stocks falling. Commercial International Bank EGX:COMI lost 1.3% and Talaat Moustafa Group EGX:TMGH dropped 2.7%.SAUDI ARABIATADAWUL:TASI u...