Stock markets in the Gulf slipped on Monday as investors turned cautious ahead of the U.S. inflation data this week, while the Dubai index halted a three-session losing streak.
The Federal Reserve’s preferred measure of inflation, core personal consumption expenditures, due on Friday, will be closely watched for clues on the U.S. central bank’s interest rate cut path.
Most Gulf currencies are pegged to the dollar, and any Fed action on rates is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Qatari benchmark index (.QSI), opens new tab was down for a fourth day, falling 0.7% to 9,332, its lowest level in seven months, with most constituents posting losses.
Qatar National Bank (QNBK.QA), opens new tab, the region’s largest lender, dropped 1.5% and Qatar Navigation (QNNC.QA), opens new tab fell 1.9%.
Saudi Arabia’s benchmark stock index (.TASI), opens new tab slipped for a third consecutive session to end 0.2% lower, with almost all sectors in the red. Riyad Bank (1010.SE), opens new tab lost 2.7% and Etihad Etisalat (7020.SE), opens new tab dropped 2%.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab fell marginally, with conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab losing 1% and National Marine Dredging (NMDC.AD), opens new tab dropping 1.7%.
Among other losers, energy major ADNOC’s three units ADNOC Distribution (ADNOCDIST.AD), opens new tab, ADNOC Drilling (ADNOCDRILL.AD), opens new tab, and ADNOC Logistics (ADNOCLS.AD), opens new tab fell 1.1%, 1.5% and 2.2%, respectively.
Meanwhile, energy giant ADNOC announced an increase in its local manufacturing target for critical industrial products in its procurement pipeline to 90 billion dirhams ($24.5 billion) by 2030 from the previous target of 70 billion dirhams ($19 billion) by 2027 as part of its in-country value (ICV) program.
Dubai’s benchmark index (.DFMGI), opens new tab bounced back after three straight sessions of losses to end 0.4% higher, supported by gains in consumer staples, communications and finance.
Dubai Islamic Bank (DISB.DU), opens new tab advanced 3.1% and Parkin Company (PARKIN.DU), opens new tab rose 1.9%.
Oil prices, a catalyst for the Gulf’s financial markets, were up 0.9% as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.84 a barrel by 1340 GMT.
Outside the Gulf, Egypt’s blue-chip index (.EGX30), opens new tab eased 0.9%, pressured by a 2.5% drop in Talaat Mostafa Group (TMGH.CA), opens new tab and a 5.6% fall in Sidi Kerir Petrochemicals (SKPC.CA), opens new tab.