Gulf Stock Markets Overview

By Md Manzer Hussain

(Reuters) – Most Gulf stock markets fell on Sunday after U.S. economic data and comments from Federal Reserve officials signaled a slower pace of interest-rate cuts.

Investors raised bets on the Fed maintaining interest rates at its December meeting, reducing expectations for easing in 2025.

The Fed's decisions significantly affect monetary policy in the Gulf, as most regional currencies are pegged to the U.S. dollar.

The Qatari benchmark index slipped 0.4%, with nearly all constituents declining, particularly in the finance, communication, and energy sectors. Qatar National Bank, the region's largest lender, fell 1.4% and Qatar Navigation dropped 1.1%.

Saudi Arabia's benchmark index halted three sessions of losses, rising 0.2% thanks to gains in the IT, utilities, real estate, industry, healthcare, and insurance sectors. Medgulf (TADAWUL:8030) surged 10%, marking its largest daily gain in over six months. The insurer announced a new allocation mechanism for reinsurance premiums to the local market from the Insurance Authority.

All but two insurance stocks closed higher, with Al Rajhi Company for Cooperative Insurance gaining 3.9%, and Saudi Reinsurance up 6.9%. Saudi Re stated that the new mechanism could boost Saudi reinsurance revenue by over 5% from 2023.

Outside the Gulf, Egypt's blue-chip index offset the previous session's gains, falling 0.7%, with most sectors declining. Telecom Egypt (BCBA:TECO2m) lost 2.6% after reporting a 13% decrease in quarterly net profit. However, Juhayna Food rose 3.7% after a nearly 200% jump in third quarter net profit.

Market Summary

• Saudi Arabia: +0.2% to 11,812
• Kuwait: +0.2% to 7,849
• Qatar: -0.4% to 10,411
• Egypt: -0.7% to 31,252
• Bahrain: Flat at 2,053
• Oman: -0.4% to 4,626