Business
Most Gulf markets in red on weak oil, Fed rate outlook
Most Gulf markets in red on weak oil, Fed rate outlook
About this update from Al Rajhi Bank
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 antic...