Most Gulf bourses track global rally as Fed's easing bets rise

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By Md Manzer Hussain Most Gulf stock markets rose in early trade on Tuesday in tandem with global bourses, as investors increased their bets that the U.S. Federal Reserve will act to prop up the world's largest economy.Friday's soft U.S. nonfarm payrolls data added to the case for a cut by the Fed, with odds for a September rate cut now standing at about 94%, according to CME Fedwatch, compared with a 63% chance at the start of last week.Interest rate moves by the Fed have a significant impact on the Gulf region's monetary policy because most of its currencies are pegged to the U.S. dollar.Dubai's benchmark stock index DFM:DFMGI advanced 0.6%, supported by gains in shares linked to the real estate, utilities and industry sectors. Emaar Properties DFM:EMAAR added 1.5% and Emirates Central Cooling Systems Corporation DFM:EMPOWER rose 1.7%. District cooling services provider EMPOWER reported a 15.3% increase in quarterly net profit attributable to shareholders. Meanwhile, Dubai's non-oil sector showed a solid recovery, with its PMI rising to 53.5 in July from 51.8 in June, driven by a sharper improvement in sales volumes.The Abu Dhabi benchmark index ADX:FADGI rose 0.3%, after two consecutive sessions of losses, lifted by a 2.4% advance in Abu Dhabi Commercial Bank ADX:ADCB and a 1.3% gain in Burjeel Holding ADX:BURJEEL.The Qatari benchmark index QSE:GNRI edged up 0.2%, aided by a 1.3% rise in telecom services provider Ooredoo QSE:ORDS and a 0.8% gain in Qatar Islamic Bank QSE:QIBK. Saudi Arabia's benchmark stock index TADAWUL:TASI was up 0.2% in early trading, with most sectors in positive territory, led by IT, real estate and healthcare stocks. Digital security firm Elm Company TADAWUL:7203 advanced 3% and ADES Holding TADAWUL:2382 gained 2.3%. Oil drilling group ADES has agreed to buy Oslo-listed rival Shelf Drilling OSL:SHLF for 3.9 billion Norwegian crowns ($379.33 million) in cash.Saudi Aramco TADAWUL:2222, however, was down 0.3%. Oil giant Aramco reported a 22% drop in second-quarter profit, mainly on lower revenue, while it racked up more debt.

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