Most stock markets in the Gulf region ended higher on Monday, aligning with global trends, as investors anticipated upcoming economic data from the U.S. and China.
Attention is focused on the U.S. consumer price index data for July, scheduled for release on Wednesday, which is projected to show a month-on-month inflation increase to 0.2%, up from -0.1% in June. Retail sales data will be released on Thursday.
The monetary policy in the Gulf Cooperation Council (GCC) countries often mirrors the Federal Reserve’s decisions due to the region’s currency pegs to the U.S. dollar.
Dubai’s main index rose by 0.2%, driven by a 1.5% gain in toll operator Salik Company and a 0.6% increase in blue-chip developer Emaar Properties. Parkin, managing public parking operations, saw a 2.5% rise following a quarterly profit boost.
In Qatar, the benchmark index gained 0.2%, supported by a 0.9% increase in Qatar National Bank, the region’s largest lender by assets.
Conversely, Saudi Arabia’s benchmark index dipped 0.3%, impacted by a 1.3% decline in aluminium products manufacturer Al Taiseer Group. The Saudi stock market has been trading sideways, with potential downside risks if U.S. recession concerns resurface, according to Hani Abuagla, Senior Market Analyst at XTB MENA. However, a rebound in oil prices could positively influence the stock market.
Oil prices, crucial for Gulf financial markets, inched up, rebounding 3.5% last week amid concerns over potential Middle East conflict disrupting supplies.
In Abu Dhabi, the index fell by 1%. China’s upcoming figures on retail sales and industrial production, due on Thursday, are anticipated to show continued economic underperformance, which may heighten global growth concerns.
Elsewhere, Egypt’s blue-chip index ended 0.6% higher, with Commercial International Bank Egypt rising by 1.6%.
4o mini
