Business
Most Gulf markets end higher on earnings, Fed cuts; Saudi falls
Most Gulf markets end higher on earnings, Fed cuts; Saudi falls
About this update from Al Rajhi Bank
By Ateeq Shariff Most Gulf stock markets ended higher on Thursday after a U.S. rate cut, healthy local corporate earnings and a trade détente between the U.S. and China, although the Saudi index bucked the trend by closing lower.U.S. President Donald Trump said he had made a deal with Chinese President Xi Jinping on rare earths and tariffs. Gulf countries trade heavily with the two nations.However, global markets sold off, as traders have seen previous promising starts followed by setbacks. On Wednesday, the U.S. Federal Reserve lowered rates, in line with market expectations. However, it signalled that it might be the last cut of the year as the ongoing government shutdown threatens data availability.U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.Abu Dhabi index ADX:FADGI gained 0.5%, with Emirates Telecommunications Group ADX:EAND advancing 3.9% after it reported a 1% increase in third-quarter profit and a revenue jump of around 30%.Dubai's main share index DFM:DFMGI closed 0.3% higher, with top lender Emirates NBD DFM:EMIRATESNBD rising 0.9%.The Qatari index QSE:GNRI rose 0.3%, bolstered by a 3.5% leap in telecom firm Ooredoo QSE:ORDS after its board approved raising the target dividend payout range to 50%-70% of normalised net profit, up from 40%-60%. The firm also posted an 11% rise in third-quarter profit.Saudi Arabia's benchmark index TADAWUL:TASI dropped 0.8%, hit by a 3.9% slide in Al Rajhi Bank TADAWUL:1120 and a 2.5% decrease in Saudi National Bank TADAWUL:1180, the country's biggest lender by assets.However, insurer Bupa Arabia TADAWUL:8210 advanced 7.8% following a quarterly profit rise.Among other gainers, Arabian Drilling TADAWUL:2381 jumped 10% - its largest intraday gain since its 2022 listing - after receiving resumption notices for two offshore rigs. They will commence operations in the first quarter of 2026 and drive 100% utilisation in the offshore segment by the second quarter.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 added 0.1%, with Commercial International Bank EGX:COMI gaining 0.9%.Saudi ArabiaTADAWUL:TASI fell 0.8% to 11,656Abu DhabiADX:FADGI gained 0.5% to 10,212DubaiDFM:DFMGI added 0.3% to 6,105QatarQSE:GNRI rose 0.3% to 10,957EgyptEGX:EGX30 was up 0.1% to 38,268BahrainBAHRAIN:BHBX gained 0.7% to 2,063Oman(.MSX30) increased 0.7% to 5,610Kuwait(.BK...