Business
Major Gulf bourses gain as PMIs signal growth
Major Gulf bourses gain as PMIs signal growth
About this update from Space42 Plc
By Md Manzer Hussain Major stock markets in the Gulf rose in early trade on Thursday, as the non-oil private sector showed steady growth, while investors also awaited a U.S. job report for clues on how soon the Federal Reserve could lower borrowing costs.Saudi Arabia's benchmark stock index TADAWUL:TASI rose 0.4%, with most sectors in the green, led by finance, materials and energy. Saudi National Bank TADAWUL:1180, the kingdom's largest lender by assets, gained 1.6% and oil major Saudi Aramco TADAWUL:2222 added 0.6%.The retailer Fawaz Abdulaziz Al Hokair & Company TADAWUL:4240, the index's best performer, climbed 7% and Saudi Basic Industries TADAWUL:2010 added 1.3%.The expansion in Saudi Arabia's non-oil private sector activity accelerated in June, driven by robust client demand and a surge in hiring, a survey showed on Thursday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to a three-month high of 57.2 from May's 55.8, putting it further above the 50-point line denoting growth. The Abu Dhabi benchmark index ADX:FADGI rose 0.2%, lifted by a 4% advance in Presight AI ADX:PRESIGHT and a 3.2% gain in Space42 ADX:SPACE42.Dubai's benchmark stock index DFM:DFMGI advanced 0.6%, supported by gains in real estate, utilities and industry sectors. Emaar Properties DFM:EMAAR added 1.5% and tolls operator Salik DFM:SALIK rose 1.7%.The UAE's non-oil private sector grew steadily in June even as regional tensions weighed on demand, and firms ramped up output to tackle backlogs, a survey showed on Thursday.The Qatari benchmark index QSE:GNRI was little changed with Qatar Gas Transport QSE:QGTS adding 0.5% while Qatar Islamic Bank QSE:QIBK, shedding 0.7%.The market's focus now will turn to a key U.S. jobs report later in the day that may justify imminent rate cuts by the Federal Reserve. Futures imply a 25% probability for a rate cut this month from the Fed. The U.S central bank's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.