Bahrain All Share Index closed at 2,044.47 points yesterday, marking a decrease of 3.25 points below the previous closing.
This decrease was due to a drop in the financial sector and the material sector.
Bahrain Islamic Index has closed at 997.29 points, marking a decrease of 2.04 points below the previous closing.
Results indicated that 72 equity transactions took place with a volume of 4,438,130 worth BD1,368,980.
Investors traded mainly in the financial sector, representing 60.58 per cent of the total value of securities traded.
Most Gulf stock markets closed higher yesterday, buoyed by rising oil prices and growing expectations ahead of next week’s US Federal Reserve meeting, with investors awaiting key economic data for clearer insight into the Fed’s future interest rate decisions.
Saudi Arabia’s benchmark index gained 0.5pc, with Saudi National Bank, the country’s biggest lender by assets, rising 1.6pc and telecoms firm Etihad Etisalat Co finishing 2.9pc higher.
Elsewhere, oil giant Saudi Aramco was up 0.3pc. The kingdom’s non-oil private sector business activity expanded at its fastest rate in 10 months in November, driven by robust demand and increased hiring, although new order growth slowed from the previous month, a survey showed on Wednesday.
Dubai’s main share index rose 0.4pc, led by a 3.6pc jump in top lender Emirates NBD and a 0.7pc increase in blue-chip developer Emaar Properties. In Abu Dhabi, the index added 0.4pc. US private payrolls fell by 32,000 in November, the steepest decline in more than two-and-a-half years, Wednesday’s ADP report showed. However, still-low layoff levels indicate this weakness might not accurately represent the labour market’s underlying strength. Traders now see an 89pc probability of an interest rate cut next week, based on the CME FedWatch tool, and major brokerages likewise anticipate easing at the December 9–10 meeting. Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar. The Qatari index eased 0.1pc, with Qatar Islamic Bank losing 1pc.
Outside the Gulf, Egypt’s blue-chip index closed 0.4pc higher.
Global shares edged up yesterday while the dollar was lower and poised for its 10th straight day of losses against a basket of major currencies.
US stocks were losing ground in early trade after two consecutive sessions of gains, with the benchmark S&P 500 flat. Healthcare, consumer discretionary and materials stocks were suffering the most losses, while real estate, financials and utilities were advancing.
The Dow Jones Industrial Average fell 0.09pc, the S&P 500 edged down 0.06pc and the Nasdaq Composite lost 0.14pc.
In Europe, the STOXX 600 was up 0.42pc and still headed for a modest weekly gain. London’s FTSE 100 index was up 0.16pc while Germany’s DAX gained 0.45pc. MSCI’s gauge of stocks across the globe rose 0.18pc.
Japanese stocks rallied sharply after an auction of government bonds drew strong demand from investors, which helped set the tone for the broader equity market. The Nikkei rose 2.33pc.
“After a 5pc pullback in late November, stocks have rebounded and are now trading at the pre-pullback levels and near all-time highs,” Michael Farr, chief executive of investment advisory firm Farr, Miller & Washington in Washington.
The gains came after US private payrolls data posted their biggest drop in more than two-and-a-half years, and following a survey of the services sector that showed activity held steady in November while hiring slowed.
“If they cut rates by a quarter of a point and then take a pause – which every Fed speaker has indicated, markets might be disappointed in the messaging. If they don’t cut and say we’re going to wait until the next meeting, markets will be disappointed there too,” Farr said.
Fed funds futures are pricing a near 90pc chance of a quarter-point cut at the end of the Fed’s next meeting on December 10, compared with an 83.4pc chance a week ago, according to the CME Group’s FedWatch tool.
The dollar index, which tracks the US currency’s performance against six others, was last down 0.08pc on the day, heading for a 10th straight daily decline, making this its longest stretch of losses since at least 1971, according to LSEG data.
The yield on the US 10-year Treasury bond was last up 3.4 basis points at 4.092pc. The Financial Times reported on Wednesday that bond investors had expressed concerns to the US Treasury that Kevin Hassett, a candidate to replace Jerome Powell as Fed chair next year, could aggressively cut interest rates to align with President Donald Trump’s preferences.
“I think there’s purposeful timing by the Trump administration to announce the president’s selection of a new Fed chairman that will be seen – correctly or not – as being more dovish around this meeting to appear as an antidote to the messaging,” Farr said.
In Japan, the government’s debt sale drew the strongest demand in more than six years, which helped soothe investor nerves about the country’s long-term finances that have stoked similar worries about other economies. The dollar was last down 0.28pc at 154.8 against the yen, which is heading for its largest weekly gain against the US currency in over two months. The yen got another boost from a Reuters report that the Bank of Japan (BOJ) is likely to raise interest rates in December with the government expected to tolerate such a decision, citing three government sources familiar with the deliberations.
Meanwhile, the yuan softened a touch, leaving the dollar up 0.18pc at 7.070 yuan in offshore trading in Hong Kong. The Chinese currency hit its strongest level against the dollar in more than a year on Wednesday. Precious metals cooled after a recent hot streak. Gold was last down 0.28pc at $4,195 an ounce, while silver fell 2.4pc to $57.03 an ounce, after hitting a record high of $58.98 on Tuesday. Brent crude was last up 0.06pc at $62.71 a barrel.
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