Business
Gulf Stocks steady, Fed outlook keeps mood subdued
Gulf Stocks steady, Fed outlook keeps mood subdued
About this update from Al Rajhi Bank
By Amna Mariyam Gulf stock markets were little changed in early trade on Monday, as investors weighed regional interest rate cuts following the U.S. Federal Reserve's moves, while uncertainty over the Fed's future policy direction tempered sentiment. The Federal Reserve trimmed its benchmark rate by a quarter percentage point on Wednesday in response to a softening labour market but signalled a measured approach to further monetary policy easing, leaving markets uncertain about the pace of future cuts. Subsequently, the central banks of Saudi Arabia, the United Arab Emirates and Qatar each slashed rates by 25 basis points. Saudi Arabia's benchmark stock index TADAWUL:TASI retreated 0.1%, on course to snap a four-day winning streak. Real estate led the decline, with Umm Al Qura Development TADAWUL:4325 sliding nearly 2%, while Al Rajhi Bank TADAWUL:1120, the world's largest Islamic lender, dropped 0.2% ahead of its ex-dividend date. Oil behemoth Saudi Aramco TADAWUL:2222 fell 0.4%, putting it on track for its first loss after six consecutive sessions of gains. Dubai's main share index DFM:DFMGI was flat, as utilities and banking shares pulled the index in opposite directions. Emirates NBD Bank DFM:EMIRATESNBD dropped 0.6%, while Dubai Electricity and Water Authority DFM:DEWA advanced 1.1%. Emaar Properties DFM:EMAAR advanced 0.7%, consolidating two days of gains after the developer scrapped plans to sell any stake in its Indian subsidiary and said it was exploring potential joint ventures with major Indian companies, including the Adani Group. Abu Dhabi's index ADX:FADGI edged up 0.1%, supported by gains in stocks linked to state-owned energy major ADNOC. ADNOC Gas rose 0.6% signing a $513 million contract with a subsidiary of China Petroleum Engineering SSE:600339. ADNOC Drilling and Borouge both gained nearly 1%. Newly listed Orascom Construction EGX:ORAS surged 5.3%, extending gains from the previous two sessions. Separately, U.S. chip giant Nvidia NASDAQ:NVDA and Abu Dhabi's Technology Innovation Institute (TII) announced the launch of a joint research lab in the UAE to develop next-generation AI models and robotics platforms. Qatar's stock index QSE:GNRI was little changed, though gains in the telecom sector offered some support. Ooredoo QSE:ORDS rose 1% after the company sold a 6% stake in IT services firm Meeza QSE:MEZA to funds managed by Fiera Cap...