By Ateeq Shariff
Most stock markets in the Gulf closed lower on Tuesday, weighed down by sluggish oil prices and fading hopes for a December U.S. rate cut.
The Federal Reserve last week cut interest rates for the second time this year, but Chair Jerome Powell said another reduction this year was "not a foregone conclusion".
Market participants now see a 65% chance of another rate cut in December, down from over 90% prior to Powell's remarks, according to CME's FedWatch Tool.
U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia's benchmark index TADAWUL:TASI gave up early gains to end 0.7% lower, falling for a fourth consecutive session, hit by a 1.5% fall in Al Rajhi Bank TADAWUL:1120 and a 4.2% slide in ACWA Power Company TADAWUL:2082, a day after the firm reported third-quarter profit missing analysts' expectations.
However, oil behemoth Saudi Aramco TADAWUL:2222 rose 0.7%. It reported a third-quarter net profit of 101.02 billion riyals ($26.94 billion), down from 103.4 billion riyals last year, and also raised its 2030 production capacity growth target for sale-ready gas to about 80% above 2021 levels, up from an earlier goal of more than 60%.
Among other gainers, Saudi Telecom Company TADAWUL:7010 rose 1.5%, following an increase in quarterly revenue.
According to Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, most sectors were in negative territory, weighing on the general performance amid persistent negative market sentiment.
In Abu Dhabi, the index ADX:FADGI added 0.4%, helped by a 3.1% jump in Aldar Properties ADX:ALDAR.
Aldar saw a steep fall in the previous two sessions after a Bloomberg report indicated that Alpha Dhabi ADX:ALPHADHABI intended to divest a portion of its stake in the developer.
Dubai's main share index DFM:DFMGI eased 0.1%, hit by a 2.7% decline in top lender Emirates NBD DFM:EMIRATESNBD.
Meanwhile, crude oil prices slipped as markets read OPEC+'s decision to pause output hikes in the first quarter of next year as a signal of oversupply in the market.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 advanced 1.1%, hitting an all-time high, with Talaat Moustafa Group Holding EGX:TMGH jumping 4.8%.
In the previous session, the holding group climbed 4.8%, after its unit launched the development of a new integrated tourism project with an anticipated investment of $788 million.
Saudi Arabia
TADAWUL:TASI dropped 0.7% to 11,398
Abu Dhabi
ADX:FADGI added 0.3% to 10,058
Dubai
DFM:DFMGI eased 0.1% to 6,013
Qatar
QSE:GNRI finished flat at 11,028
Egypt
EGX:EGX30 gained 1.1% to 39,066
Bahrain
BAHRAIN:BHBX was flat at 2,078
Oman
(.MSX30) declined 1% to 5,616
Kuwait
(.BKP) lost 0.1% to 9,508
($1 = 3.7504 riyals)