Most Gulf stocks firm as markets brace for pivotal week
Gains were tempered by oil prices slipping to a three-week low, pressuring sentiment in a region where oil remains a key economic driver.
Saudi Arabia's benchmark index (.TASI), opens new tab added 0.1%, helped by a 4% jump in healthcare provider Dr Sulaiman Al Habib (4013.SE), opens new tab and a 2.2% increase in SABIC Agri-Nutrients Co (2020.SE), opens new tab after the duo reported a rise in second-quarter profit.
Elsewhere, Yanbu National Petrochemical Co (2290.SE), opens new tab gained 2.9% after the firm reported a more than two-fold sequential increase in second-quarter profit.
Qatar's stock index (.QSI), opens new tab rose 0.3%, extending its winning streak into the new week after notching gains in all sessions last week, as it climbed to a fresh peak last seen over two and a half years ago.
Shares of index heavyweight Qatar International Islamic Bank (QIIB.QA), opens new tab jumped nearly 3%, as investors positioned ahead of Monday's dividend eligibility cutoff to secure an upcoming payout.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab - which traded after a session's break - advanced 1.3%, hitting a fresh record high, with Commercial International Bank (COMI.CA), opens new tab advancing 3.3%.
Investors across the region are also eyeing the U.S. Federal Reserve's two-day policy meeting, where rates are widely expected to remain unchanged at 4.25%–4.50%, despite renewed political pressure from Trump for cuts.
A rise in U.S. inflation to 2.7% in June has clouded expectations for a potential rate reduction in September, with market odds narrowing to nearly 50-50.
Fed policy remains closely watched in the Gulf, where most currencies are pegged to the U.S. dollar, making it a key anchor for regional monetary stability.
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8 hours ago
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Berkshire takes $3.8 billion Kraft Heinz write-down, operating profit falls
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"Investors are getting antsy and want to seek activity, and nothing is happening," said Kyle Sanders, an analyst at Edward Jones. "Buffett definitely views the market as overvalued, and will sit back and wait for something to come to him." Uncertainty about trade policies, including tariffs, has become a headwind as delayed orders and shipments led to declining revenue at most of Berkshire's consumer businesses. Jazwares, which makes the popular Squishmallows plush toys, saw revenue fall 38.5% in the year's first half. Analysts viewed overall results as lackluster. "Berkshire and the economy are at an inflection point," said Cathy Seifert, a CFRA Research analyst. "I don't think the market will embrace the combination of mediocre results, a lack of stock buybacks, and Berkshire's recent share underperformance amid a management transition." Seifert and Sanders rate Berkshire "hold." Second-quarter operating income fell to $11.16 billion, or about $7,760 per Class A share, from $11.6 billion a year earlier. Results included $877 million of currency losses as the U.S. dollar weakened. Net income, including gains and losses on stocks such as Apple (AAPL.O), opens new tab and American Express (AXP.N), opens new tab, fell to $12.37 billion from $30.35 billion. Revenue fell 1% to $92.52 billion. Buffett views unrealized investment gains and losses, including on stocks Berkshire has no plans to sell, as often meaningless to understanding his company. The $3.76 billion after-tax write-down for Berkshire's 27.4% Kraft Heinz stake, equal to $5 billion before taxes, followed the struggling food company's announcement it would consider strategic alternatives, which could include a breakup. Berkshire had carried Kraft Heinz on its books at above-market value but said economic and other uncertainties, and its longer-term plans to remain an investor, made the gap "other-than-temporary." The write-down is Berkshire's second for Kraft Heinz, following a $3 billion write-down in 2019. Buffett acknowledged at the time that Berkshire overpaid in the 2015 merger of Kraft Foods and H.J. Heinz, one of his biggest investment missteps. Kraft Heinz has suffered as more shoppers favor healthier and private-label alternatives. Its approximately 200 brands include Oscar Mayer, Kool-Aid, Velveeta and Jell-O. Berkshire also carries another big investment, its 28.1% stake in Occidental Petroleum (OXY.N), opens new tab at $5.3 billion above fair value, but reported no need for a write-down. 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Berkshire owns several insurers and reinsurers, electric utility and renewable energy businesses, several chemical and industrial companies, and familiar consumer brands such as Dairy Queen, Fruit of the Loom and See's Candies. Berkshire said the 12% quarterly decline in insurance underwriting profit stemmed primarily from reinsurance businesses and some smaller insurance businesses. Geico, its best-known insurance business, saw pre-tax underwriting profit rise 2%, as a 5% increase in premiums offset a smaller rise in accident losses. The car insurer has been ceding market share to State Farm and Progressive (PGR.N), opens new tab, while focusing on improving underwriting quality and technology and cutting jobs. Analysts said higher tariffs could be a headwind for Geico if the cost of auto parts rose, potentially increasing losses from accident claims. BNSF is also cutting expenses. 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Reuters
a day ago
- Reuters
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Wall St Week Ahead AI gains and strong earnings support Wall Street as tariff woes linger
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