Gulf shares mixed on corporate earnings, US inflation

Stock markets in the Gulf were mixed on Monday as investors weighed earnings reports while awaiting key U.S. inflation data and the expiry of a U.S. tariff deadline on China.

U.S. consumer prices, scheduled for Tuesday, will offer clues on the Federal Reserve’s path for rate cuts. A hotter than expected reading could dampen expectations for near-term interest rate reductions. Traders are currently pricing in about a 90% probability of an easing in September and at least one more cut by year-end.

Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

Saudi Arabia’s benchmark stock index slipped for a third straight session, ending 1% lower, with most constituents posting losses.

Saudi Advanced Industries Co slumped 9.5% to hit more than two-year low after the investment firm posted a second-quarter net loss, compared to profit a year earlier.

Shares of MBC Group dropped 4.1% to 30.3 riyals per share, their lowest since listing in January. The media giant reported a 38% decrease in quarterly net profit.

Among other losers Al-Dawaa Medical Services Co dropped 6.3% as the healthcare service provider reported a 9.7% year-on-year decline in quarterly net profit.

The Abu Dhabi benchmark index fell for a fourth day, dipping 0.1%, with Abu Dhabi Islamic Bank dropping 1.9% and Ghitha Holding declining 4.8%.

In contrast, Apex Investment advanced 4.3% and Dana Gas rose 1.6%.

Dubai’s benchmark stock index was up 0.1%, aided by gains in consumer discretionary, utilities, communication and industry shares. Tolls operator Salik added 1.7% and Amlak Finance surged 10.1%.

The Qatari benchmark index gained 0.1%, supported by a 0.5% rise in Industries Qatar and a 1.5% increase in Qatar Electricity and Water.

Outside the Gulf, Egypt’s blue-chip index was down 0.6% after a seven-session winning streak and hitting a fresh record high in the previous session. Abu Qir Fertilizers lost 1.1% while Talaat Moustafa Group shed
0.6%.

Egypt’s largest developer, TMG, posted a 26.6% fall in second-quarter net profit attributable to shareholders, compared to the previous three months.

Egypt’s annual urban consumer price inflation dropped to 13.9% in July from 14.9% in June, while core inflation rose to 11.6% year-on-year in July from 11.4% in June, the central bank said late on Sunday.

————————————-

 SAUDI ARABIA    down 1% to 10,792

 KUWAIT          added 0.2% to 9,339

 QATAR           rose 0.1% to 11,371

 EGYPT           fell 0.6% to 35,909

 BAHRAIN         down 0.2% to 1,938

 OMAN            up 0.2% to 4,863

 ABU DHABI       down 0.1% to 10,302

 DUBAI           added 0.1% to 6,153

————————————-