Most stock markets in the Gulf ended lower on Tuesday on rising tensions in the Middle East, although looming U.S. interest rate cuts limited losses.
Israel issued new evacuation orders for Deir Al-Balah in the central Gaza Strip late on Sunday, forcing more families to flee, saying forces intended to act against militant group Hamas and others operating in the area.
The escalation comes with little hope of an end in sight to the war as diplomacy by mediators Qatar, Egypt, and the United States has so far failed to close the gap between Israel and Hamas, whose leaders traded blame over responsibility for the lack of accord.
Saudi Arabia’s benchmark index dropped 0.6%, hit by a 1.8% fall in aluminium products manufacturer Al Taiseer Group and a 0.7% decrease in Al Rajhi Bank.
The Qatari benchmark fell 0.3%, weighed down by a 1.1% slide in petrochemical maker Industries Qatar.
In Abu Dhabi, the index lost 0.2%.
Most Gulf markets gain on Fed rate-cut hopes
Dubai’s main share index, however, rose 0.4%, with blue-chip developer Emaar Properties gaining 1.1%.
San Francisco Federal Reserve Bank President Mary Daly on Monday said “the time is upon us” to cut borrowing costs, echoing what Fed Chair Jerome Powell told a global central banking conference last week in Jackson Hole, Wyoming, but how big that first rate cut will be will depend on the data.
Traders see a 70% chance of a 25-basis-point (bp) rate cut and about 30% probability of a bigger 50-bp reduction, according to the CME FedWatch tool.
Outside the Gulf, Egypt’s blue-chip index advanced 0.8%, with Talaat Mostafa Holding rising 2.7%.
The IMF has softened several conditions of its $8 billion financial support package to Egypt, including allowing Cairo more time to implement reforms, it said in a review.
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SAUDI ARABIA fell 0.6% to 12,182
ABU DHABI lost 0.2% to 9,334
DUBAI gained 0.4% to 4,343
QATAR dropped 0.3% to 10,189
EGYPT rose 0.8% to 30,363
BAHRAIN closed flat at 1,928
OMAN eased 0.1% to 4,691
KUWAIT added 0.5% to 7,839
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Source: Brecorder
