Most Gulf stocks black, Abu Dhabi hits record high

Traders wait at the Bahrain Exchange after Joe Biden won the U.S. presidency in Manama, Bahrain, November 8, 2020.REUTERS/Hamad Mohamed Mohamed

Aug 11 (Reuters) – Most Gulf stocks ended higher on Thursday, buoyed by strong corporate earnings and weaker-than-expected U.S. inflation data, which encouraged bets that the Federal Reserve would not aggressively raise interest rates.

US consumer prices were unchanged in July compared to June, when they rose 1.3% per month. The weaker-than-expected July result due to a sharp drop in gasoline costs has led the market to reposition itself on hopes of peaking inflation. read more

Abu Dhabi’s main stock index (.FTFADGI) Closed at a record high, up 1% to 10,198, boosted by 3.3% of Abu Dhabi First Bank, the UAE’s largest lender (FAB.AD).

Saudi Arabia Benchmark Index (.one) up 0.8%, Arab State Bank (1080.SE) Up 0.9%, Saudi British Bank (1060.SE) It closed up 0.5%.

Elsewhere, Saudi Electricity Company (5110.SE) It rose 0.6 percent as the utility secured $3 billion in international syndicated financing.

Qatar Index (.QSI) Gained 1.3% as most stocks in the index were in positive territory, including Qatar National Bank, the largest bank in the Gulf (QNBK.QA)rose 1.7%.

Qatari stocks posted a positive performance on solid corporate earnings and rising gas prices, said Fadi Reyad, market analyst at CAPEX.com MENA.

“As a result, the major indexes are likely to extend gains under these favorable conditions.”

Crude oil rose more than 1%, the main catalyst for Gulf financial markets, after the International Energy Agency raised its forecast for oil demand growth this year as soaring gas prices prompted some consumers to turn to oil.

Dubai’s main stock index (.DFMGI) Bucking the trend, it closed down 0.3%, hit by a 5.3% drop in Air Arabia (AIRA.DU).

The budget airline reported higher net profit in the second quarter, but earnings fell sequentially.

However, losses in the Dubai index were limited by a 1.2% rise by Dubai Electricity and Water Authority (DEWAA.DU) With second-quarter earnings growth.

Beyond the Gulf, Egypt’s Blue Chip Index (.EGX30) Up 0.2%, ending three-day loss, tobacco monopoly Oriental Company (East.CA) rose 2.3%.

Reporting by Ateeq Shariff in Bengaluru; Editing by Emelia Sithole-Matarise

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