By Md Manzer Hussain
Most Gulf stock markets ended lower on Wednesday, tracking global peers as investors turned cautious ahead of Nvidia's quarterly earnings and a key delayed U.S. jobs data report, while weaker oil prices also weighed on sentiment.
Oil, a key driver for Gulf financial markets, fell on oversupply concerns, though U.S. sanctions on major Russian producers helped limit losses. Brent crude was down 2.5% at $63.3 a barrel by 1300 GMT.
Dubai's benchmark stock index DFM:DFMGI was down 0.6%, pressured by broad-based losses. Emaar Properties DFM:EMAAR fell 1.1% and Dubai Electricity and Water Authority (DEWA.DU) slipped 2.6%.
The Abu Dhabi benchmark index ADX:FADGI fell 0.2%, extending losses into a sixth session and hitting a near five-month low. First Abu Dhabi Bank ADX:FAB, the UAE's largest lender, lost 1.2% and Abu Dhabi Islamic Bank ADX:ADIB declined 1.5%, while Presight AI Holding ADX:PRESIGHT added 2.2%.
Separately, South Korea agreed to work with the United Arab Emirates on the U.S.-backed Stargate project to build a large artificial intelligence data campus in the Gulf state, Seoul said on Tuesday.
Saudi Arabia's benchmark stock index TADAWUL:TASI was down 0.9%, with almost all sectors in negative territory, led by healthcare, real estate and information technology. Al Rajhi Bank TADAWUL:1120 declined 1.6% and Arabian Internet and Communications Services Co TADAWUL:7202 lost 1.7%.
"GCC markets mostly trended lower as investors stayed cautious ahead of Nvidia NASDAQ:NVDA's earnings after the U.S. close," said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, adding that the report is seen as a key gauge for the AI sector amid worries over stretched valuations and heavy capital flows into artificial intelligence.
The Qatari benchmark index QSE:GNRI snapped a five-session losing streak, rising 0.6%, with almost all stocks advancing. Industries Qatar QSE:IQCD gained 3%, while Ooredoo QSE:ORDS added 1.9%.
Markets are now awaiting Thursday's delayed September non-farm payrolls report, with traders pricing about a 42% chance of a 25-basis-point Federal Reserve rate cut in December, down from near certainty a month ago.
U.S. monetary policy moves are closely followed in the Gulf, where most currencies are pegged to the dollar.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 ended little changed, supported by a 6.1% gain in Misr Cement EGX:MCQE and a 2.3% rise in E-Finance For Digital And Financial Investments EGX:EFIH, which said it was formulating a new three-year investment strategy.
SAUDI ARABIA
TADAWUL:TASI down 0.9% to 10,999
KUWAIT
(.BKP) up 0.4% to 9,381
QATAR
QSE:GNRI rose 0.6% to 10,751
EGYPT
EGX:EGX30 ended flat at 40,509
BAHRAIN
BAHRAIN:BHBX lost 0.7% to 2,035
OMAN
(.MSX30) fell 0.1% to 5,618
ABU DHABI
ADX:FADGI down 0.2% to 9,858
DUBAI
DFM:DFMGI declined 0.6% to 5,862