Gulf stocks end mixed ahead of US jobs data; Egypt extends gainsc

BENGALURU: Gulf equities were mixed on Thursday, tracking firmer oil prices as investors awaited key U.S. labour data that could help shape expectations for the Federal Reserve’s interest-rate path.

Oil prices, a key catalyst for Gulf markets, rose amid developments involving Venezuela and reports of progress on proposed U.S. sanctions legislation targeting countries doing business with Russia. Brent crude rose 1.4% to $60.78 a barrel by 1235 GMT.

Saudi Arabia’s benchmark stock index edged up 0.2%, supported by gains in energy, IT and financial shares. National Shipping Company jumped 10%, while Saudi National Bank, the kingdom’s largest lender by assets, added 0.7%.

Saudi Basic Industries Corp recovered from a near-17-year low hit earlier in the session to trade 0.5% higher after SABIC said it agreed to sell its European petrochemical business and its Engineering Thermoplastics business in Europe and the Americas for a combined enterprise value of $950 million.

Dubai’s benchmark stock index extended its rally for a sixth straight session, hovering near its highest level since 2008 and closing up 0.1% as communication, industrials and utilities advanced. Air Arabia climbed 4.6% and Emirates Integrated Telecommunications gained 1.1%, while Emaar Properties fell 1% and toll operator Salik dropped 1.1%.

“The market held steady near a new 18-year high. The market could see further advances, backed by solid fundamentals and positive economic projections,” said Joseph Dahrieh, managing director at Tickmill.

The Qatari benchmark index fell 0.8%, with most stocks lower. Industries Qatar shed 0.8% and Qatar National Bank slid 1.3%.

The Abu Dhabi benchmark index snapped a two-session winning streak to end 0.1% lower. ADNOC Logistics fell 1.2% and Abu Dhabi National Energy Company lost 1.9%, while Aldar Properties rose 1% after IFR reported the developer raised $1 billion from a U.S. dollar hybrid bond that priced with a 5.875% coupon and drew $2.9 billion of final orders.

Investors are awaiting U.S. non-farm payrolls data due on Friday for further clues on the Fed’s policy outlook. Gulf markets often track shifts in U.S. rate expectations because most regional currencies are pegged to the dollar.

Outside the Gulf, Egypt’s blue-chip index rose 0.8%, lifted by a 5.3% gain in Telecom Egypt and a 1.3% rise in Commercial International Bank.

Separately, Egypt’s headline inflation is expected to have inched up to 12.5% in December from 12.3% in November, a Reuters poll showed on Wednesday.