Most Gulf bourses in red as focus shifts to US inflation data

Most stock markets in the Gulf ended lower on Wednesday ahead of crucial U.S. inflation data that will offer more clarity on the pace of the Federal Reserve’s interest rate reductions.

The Consumer Price Index (CPI) report, scheduled for release at 8:30 a.m. ET (1330 GMT), is expected to rise 0.3%, though anything above that could further reduce the chance of a December easing.

With investors seeing a 58.7% chance of a 25-basis point interest rate cut at the Fed’s December meeting, according to CME FedWatch, October’s consumer price index figures will be closely watched to see if inflationary pressures are easing.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions, as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia’s benchmark index declined 1%, weighed down by a 1.7% fall in aluminium products manufacturer Al Taiseer Group and a 1.9% decrease in Al Rajhi Bank.

Most Gulf markets ease on weak oil, caution ahead of US data

Oil prices – a catalyst for the Gulf’s financial markets – held near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025 and amid demand concerns in China.

Shares of oil giant Saudi Aramco were down 0.5%.

Dubai’s main share index gained 0.7%, led by a 4.7% jump toll operator Salik Company after reporting a rise in third-quarter net profit.

In a separate bourse filing, Salik also said it expects FY2025 total revenue growth to be in a range of 25-26% year-on-year.

Among other gainers, blue-chip developer Emaar Properties advanced 2%, rising for a fourth consecutive session.

On Monday, Emaar reported nine-month net profit of 8.52 billion dirhams ($2.32 billion), up from 8.24 billion dirhams year ago.

In Abu Dhabi, the index fell 0.5%, with conglomerate International Holding losing 0.8%.

The Qatari benchmark dropped 0.4%, with petrochemical maker Industries Qatar losing 1.2%.

Outside the Gulf, Egypt’s blue-chip index retreated 0.5%, with Talaat Mostafa Group falling 1.4% and Ezz Steel Co closing 1.7% lower.

—————————————

 SAUDI ARABIA    declined 1% to 11,930

 ABU DHABI       fell 0.5% to 9,372

 DUBAI           gained 0.7% to 4,733

 QATAR           down 0.4% to 10,420

 EGYPT           lost 0.5% to 31,433

 BAHRAIN         was up 0.8% to 2,045

 OMAN            lost 0.4% to 4,655

 KUWAIT          added 0.3% to 7,823

—————————————