Mideast Stocks: Gulf markets muted as investors weigh Fed leadership change, mixed earnings

Zawya

6 days ago

Most stock markets in the Gulf were subdued in early trade on Thursday, as investors digested mixed corporate earnings and remained cautious amid uncertainty over U.S. Federal Reserve leadership.
Expectations for a more accommodative Fed policy have increased following weaker U.S. macroeconomic data and moves by former U.S. President Donald Trump to nominate dovish candidates to the Fed board. Traders are now pricing in a 95.2% chance of a September rate cut, up from 63% at the end of July, according to CME FedWatch.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Dubai's benchmark stock index slipped 0.4%, weighed down by declines in real estate and financial shares. Emaar Properties fell 1%, while its unit Emaar Development dropped 2.3%.
Emaar Properties, Dubai's largest property developer, posted a 39.7% year-on-year rise in second-quarter net profit attributable to shareholders, but it dipped 9% from the previous three-month period.
The Abu Dhabi benchmark index eased 0.1%, pressured by a 0.4% loss in International Holding and a 2.6% drop in Agthia Group, which reported a net loss for the second quarter. In contrast, Burjeel Holding surged 4.8%, after posting a more than twofold jump in net profit.
Saudi Arabia's benchmark stock index slipped 0.2%, with most constituents posting losses. Petro Rabigh fell 1.6%, after the petrochemical company reported a second-quarter net loss of 1.37 billion riyals.
Savola Group lost 1%, after the food products giant reported a 22% year-on-year decline in quarterly net profit.
The Qatari benchmark index edged up 0.1%. Qatar Aluminum Manufacturing rose 2.6%, after reporting a 44% increase in half-year net profit.