Gulf stock markets were little changed in early trade on Monday, as investors weighed regional interest rate cuts following the U.S. Federal Reserve’s moves, while uncertainty over the Fed’s future policy direction tempered sentiment.
The Federal Reserve trimmed its benchmark rate by a quarter percentage point on Wednesday in response to a softening labour market but signalled a measured approach to further monetary policy easing, leaving markets uncertain about the pace of future cuts. Subsequently, the central banks of Saudi Arabia, the United Arab Emirates and Qatar each slashed rates by 25 basis points.
Saudi Arabia’s benchmark stock index (.TASI) retreated 0.1%, on course to snap a four-day winning streak. Real estate led the decline, with Umm Al Qura Development (4325.SE) sliding nearly 2%, while Al Rajhi Bank (1120.SE), the world’s largest Islamic lender, dropped 0.2% ahead of its ex-dividend date. Oil behemoth Saudi Aramco (2222.SE) fell 0.4%, putting it on track for its first loss after six consecutive sessions of gains.
Dubai’s main share index (.DFMGI) was flat, as utilities and banking shares pulled the index in opposite directions. Emirates NBD Bank (ENBD.DU) dropped 0.6%, while Dubai Electricity and Water Authority (DEWAA.DU) advanced 1.1%. Emaar Properties (EMAR.DU) advanced 0.7%, consolidating two days of gains after the developer scrapped plans to sell any stake in its Indian subsidiary and said it was exploring potential joint ventures with major Indian companies, including the Adani Group.
Abu Dhabi’s index (.FTFADGI) edged up 0.1%, supported by gains in stocks linked to state-owned energy major ADNOC. ADNOC Gas rose 0.6% after signing a $513 million contract with a subsidiary of China Petroleum Engineering (600339.SS). ADNOC Drilling and Borouge both gained nearly 1%. Newly listed Orascom Construction surged 5.3%, extending gains from the previous two sessions. Separately, U.S. chip giant Nvidia (NVDA.O) and Abu Dhabi’s Technology Innovation Institute (TII) announced the launch of a joint research lab in the UAE to develop next-generation AI models and robotics platforms.
Qatar’s stock index (.QSI) was little changed, though gains in the telecom sector offered some support. Ooredoo (ORDS.QA) rose 1% after the company sold a 6% stake in IT services firm Meeza (MEZA.QA) to funds managed by Fiera Capital (UK) Limited, reducing its holding to 4%.
