Most stock markets in the Gulf were subdued yesterday as investors turned cautious ahead of crucial US job data this week for further clues on the timing of rate cuts by the Federal Reserve.
Markets see a 70 per cent chance of a September rate reduction, and have priced in about two cuts this year. Forecasters also expect two cuts.
The US non-farm payroll report for May due today will provide more clues on the Fed’s rate trajectory. Most Gulf currencies are pegged to the dollar, and any US monetary policy change is usually followed by Saudi Arabia, the UAE and Qatar.
The Abu Dhabi benchmark index eased 0.1pc, after previous session gains. The conglomerate International Holding shed 0.3pc and First Abu Dhabi Bank, the UAE’s largest lender, slipped 1.2pc.
Dubai’s benchmark index fell marginally with the blue-chip developer Emaar Properties sliding 1.3pc, and Taxi Company dropping 2.7pc. Tolls operator Salik Company, however, gained 1.8pc.
Saudi Arabia’s benchmark stock index bounced back from two consecutive sessions of losses and rose 0.1pc, supported by finance stocks. Al Rajhi Bank, the world’s largest Islamic lender, rose 1.4pc and Saudi Aramco added 0.4pc.
Saudi Arabia’s sale of shares in oil giant Aramco drew more demand than the stock on offer within hours of offer on Sunday.
Among other gainers, shares of Miahona Holding, the water and wastewater infrastructure firm, jumped 29.91pc to 14.94 riyals compared to its IPO price of 11.50 riyals per share in its market debut.
The Qatari benchmark index continued its upward trend for a sixth straight session, increasing by 0.4pc, with broad sector gains. Qatar Islamic Bank added 0.7pc and Qatar Fuel Company rose 1.4pc.
Outside the Gulf, Egypt’s blue-chip index was down for a second straight session and ended 0.8pc lower, with all sectors in the red. Eastern Company, the Egypt’s largest cigarettes maker, slumped 22.1pc and E-Finance for Digital declined 6.3pc.