Most stock markets in the Gulf tracked global equities lower on Thursday after the U.S. Federal Reserve signaled a slower pace of rate cuts in the coming year.
Barring Kuwait, all central banks of the Gulf Cooperation Council cut key interest rates on Wednesday, following the Federal Reserve’s decision to reduce U.S. rates by a quarter of a percentage point.
The Fed cut interest rates as expected, but Powell’s explicit references to the need for caution from here on sent markets into a tailspin.
Saudi Arabia’s benchmark stock index slipped 0.6%, pressured by losses in most sectors. Al Rajhi Bank fell 1.6% and Almarai Company lost 2.1%.
Saudi Arabia’s largest dairy producer, Almrai, said its board had approved a full-year cash dividend of 1 riyal per share, the same as the previous year.
Savola Group surged 10% in its third session of gain and hit its highest level in more than nine years.
The Kingdom’s largest foods producer, Savola, said eligible shareholders will receive Almarai shares on Dec 19, after its shareholders approved Sunday the distribution of its entire 34.52% stake in Almarai, valued at 8.34 billion riyals ($2.22 billion), as in-kind compensation for a capital reduction.
Among other gainers, Saudi Aramco rose 1.9%.
Saudi Vice Minister of Mining Affairs said on Tuesday that Lithium Infinity, a startup, will lead the lithium extraction project with cooperation from Aramco and Ma’aden.
Gulf equities end mixed; Fed rate outlook in focus
The Abu Dhabi benchmark index fell 0.2%, weighed down by a 1.8% loss in ADNOC Drilling, while ADNOC Logistics was up 1.5% after it said its integrated logistics business segment expanded significantly in 2024, with 20 offshore assets added.
Dubai’s benchmark stock index was up 0.2%, lifted by gains in most sectors. Emaar Properties rose 2.4% and Emirates NBD gained 2%.
Dubai’s largest lender, ENBD, said Wednesday it and Abu Dhabi Islamic Bank have closed a £140 million club deal for student accommodation in London.
Outside the Gulf, Egypt’s blue-chip index edged up 0.1% after two straight session of loss, with Commercial International Bank rising 1.1% and Abu Qir Fertilizer gaining 3.1%.
“Market remains under pressure and could see some volatility as investors react to the potential for an increasingly stronger dollar”, said Milad Azar, market analyst at XTB MENA.
----------------------------------------- SAUDI ARABIA fell 0.6% to 11,892 KUWAIT lost 0.04% to 7,800 QATAR Closed EGYPT added 0.1% to 30,527 BAHRAIN was down 0.2% to 2,001 OMAN up 0.9% to 4,509 ABU DHABI down 0.2% to 9,273 DUBAI up 0.2% to 5,047 -----------------------------------------
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