By Amna Mariyam
Middle East markets were mixed on Thursday as investors looked past initial jitters from Israel’s strike in Qatar and priced in a potential U.S. Federal Reserve rate cut later this month, while Saudi Arabia’s main index slipped 0.4% to near a two-year low amid broad sector losses and softer oil prices.
Qatar's benchmark index QSE:GNRI rose 0.1%, snapping a three-day losing streak, with buying concentrated in industrials. However, the gauge notched a fourth straight weekly loss, underscoring persistent pressure.
Industries Qatar QSE:IQCD gained more than 2%, ending a four-week slide as traders bargain-hunted after recent weakness.
Saudi's main share index TADAWUL:TASI fell 0.2% to nearly a two-year low, with all sectors closing in the red as oil prices eased on worries over weaker U.S. demand and oversupply.
Sulaiman Al Habib TADAWUL:4013 slipped 2.4%, while Saudi Aramco TADAWUL:2222 eased 0.2%, extending recent losses after its sharpest daily decline in more than five years.
Kingdom-owned oil giant Aramco raised $3 billion in a dual-tranche Islamic bond (sukuk) sale, as the tapping debt markets to shore up its balance sheet amid softer oil prices.
Elsewhere, newly listed real estate firm Dar Al Majid TADAWUL:4326 fell 8.2%, extending declines since its debut.
Dubai's main index <.DFMGI> added 0.6%, rebounding from its steepest level in nearly two months, supported by a 2.7% rise in Emirates NBD Bank DFM:EMIRATESNBD as sentiment toward financials stabilised.
Abu Dhabi index ADX:FADGI gained 0.3%, halting a four-day decline, boosted by a 3.6% jump in Aldar Properties ADX:ALDAR — its biggest single-day gain in nearly two months.
The bourse welcomed the primary listing of Orascom Construction EGX:ORAS, which surged 8% in its debut session. The company will maintain its secondary listing on the Egyptian Exchange.
However, the UAE markets still need further momentum to support a sustained recovery, said George Pavel, General Manager at Naga.com Middle East.
Investors continue to keep a close watch on the U.S. Federal Reserve after a benign reading on U.S. producer prices led markets to price in a greater chance of three interest rate cuts this year.
The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 trended up XX%, boosted by a 1.2% rise in Commercial International Bank EGX:COMI, and as annual urban inflation eased to 12% in August, extending a two-year downward trend amid tight monetary policy.
The successful debut of Orascom Construction on the Abu Dhabi exchange had a positive spillover effect, contributing to sustaining momentum in the Egyptian market, Pavel added.
SAUDI ARABIA
TADAWUL:TASI dropped 0.4% to 10,453
ABU DHABI
ADX:FADGI rose 0.3% to 9,960
DUBAI
DFM:DFMGI climbed 0.6% to 5,957
QATAR
QSE:GNRI gained 0.1% to 11,093
EGYPT
EGX:EGX30 added 0.8% to 34,937
BAHRAIN
BAHRAIN:BHBX advanced 0.1% to 1,943
OMAN
(.MSX30) eased 0.1% to 5,082
KUWAIT
(.BKP) fell 0.2% to 9,342