By Amna Mariyam
Most Gulf equities edged higher on Thursday after regional central banks cut interest rates by 25 basis points, mirroring the U.S. Federal Reserve’s widely expected move to support the labor market.
The Fed also signalled a measured path for further easing, leaving investors uncertain about the pace of future cuts.
Saudi Arabia's benchmark stock index TADAWUL:TASI rose 1.2% for a third straight session after the Saudi Central Bank matched the Fed with a 25-basis-point cut.
Utilities and IT stocks led gains. Arabian Internet and Communications Services TADAWUL:7202 jumped 5.4%, extending the prior session’s advance after it signed a digital infrastructure framework agreement with Saudi Aramco TADAWUL:2222, which added 1.5%.
MBC Group TADAWUL:4072 surged 10% after its unit Istedamah Holding sold its entire stake in MBC to the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund.
Saudi equities may extend their rebound on private sector strength, but oil price volatility remains a key risk to sustained gains, said Ahmed Negm, Head of Market Research MENA at XS.com.
In the UAE, Abu Dhabi’s index ADX:FADGI rose 0.6%, lifted by consumer staples and energy.
ADNOC Drilling ADX:ADNOCDRILL climbed 4.4% in active trade, while ADNOC Distribution ADX:ADNOCDIST and ADNOC Logistics ADX:ADNOCLS gained 1.3% and 2.5%, respectively.
ADNOC’s international investment arm, ADNOC XRG, and its consortium partners withdrew a non-binding $18.7 billion bid for Australian gas producer Santos ASX:STO, ending a takeover saga that lasted months.
Elsewhere, newly listed Orascom Construction EGX:ORAS surged nearly 12% after three consecutive sessions of losses.
In contrast to its regional peers, Dubai's main share index DFM:DFMGI gave up early gains to finish 0.2% lower, marking three straight sessions of losses, hit by a broad-based sectoral decline.
Commercial Bank of Dubai DFM:CBD fell 3.7%, and Dubai Electricity and Water Authority DFM:DEWA shed 0.7%.
Real estate outperformed, with Emaar Properties DFM:EMAAR rising more than 1% after the developer dropped plans to sell a stake in its Indian entity and was considering a joint venture with larger firms, including Adani Group NSE:ADANIENT.
Separately, the UAE's economy is projected to grow 4.9% in 2025, up from prior forecast of 4.4%, on higher oil production and strong growth in the non-hydrocarbon sector, the central bank said.
Qatar's benchmark QSE:GNRI added 0.7%, consolidating two days of gains on financials-led buying. Qatar National Bank QSE:QNBK and Qatar Islamic Bank QSE:QIBK rose 1.4% and 1.7%, respectively.
Following the Fed, the central banks of the United Arab Emirates and Qatar slashed interest rates by 25 basis points.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 gained 1.2%, lifted by a 7.4% jump in Eastern Company EGX:EAST.
SAUDI ARABIA
TADAWUL:TASI jumped 1.2% to 10,781
ABU DHABI
ADX:FADGI advanced 0.6% to 10,009
DUBAI
DFM:DFMGI slipped 0.2% to 5,979
QATAR
QSE:GNRI climbed 0.7% to 11,308
EGYPT
EGX:EGX30 rose 1.2% to 35,403
BAHRAIN
BAHRAIN:BHBX fell 0.1% to 1,923
OMAN
(.MSX30) added 0.1% to 5,124
KUWAIT
(.BKP) shed 0.1% to 9,436