Saudi leads as Gulf bourses end higher; Egypt extends loss
2024.06.02 09:44
By Md Manzer Hussain
(Reuters) – Most stock markets in the Gulf ended higher on Sunday, led by the Saudi index, after a U.S. inflation reading supported expectations of interest rate cuts from the Federal Reserve.
Saudi Arabia’s benchmark index rose 1.1% after it hit a more than five-month low on Thursday. The index was lifted by gains in almost all sectors, led by the IT, utilities and healthcare stocks.
ACWA Power advanced 4.4% and Saudi National Bank, the kingdom’s largest lender, added 1.8%. Saudi Aramco (TADAWUL:), however, slipped 1.9% to 28.45 riyals per share, its lowest level in more than one year.
Meanwhile, Saudi Arabia is offering investors about 1.545 billion Aramco shares, at 26.7 to 29 riyals. The sale drew more demand than the stock on offer within hours of kicking off on Sunday.
The Qatari benchmark index was up for a second straight session, and rose 0.7%, aided by gains in energy, finance and real estate sectors. Qatar Fuel Co advanced 7.7%, and Qatar Gas Transport climbed 4.8%.
The data showed Friday U.S. inflation rose in line with market expectations in April, spurring hopes of interest rates cuts by the Fed.
Most Gulf currencies are pegged to the dollar, so U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt’s blue-chip index slipped for a fifth consecutive session to end 0.2% lower, with most sectors in the red.
Eastern Company declined 5.8% and Talaat Mostafa Group dropped 2.1%. Juhayna Food, however, rose 2.5% after the foods maker posted a 41% increase in its first-quarter net profit.
SAUDI ARABIA rose 1.1% to 11,625
KUWAIT was up 0.2% to 7,697
QATAR gained 0.7% to 9,385
EGYPT fell 0.2% to 26,870
BAHRAIN lost 0.3% to 2,034
OMAN was down 0.3% to 4,833
($1 = 3.7505 riyals)
