Most Gulf shares gain on US inflation relief; Egypt extends losses

Most stock markets in the Gulf ended higher on Monday, in step with global equities, after cooler-than-expected U.S. inflation data revived hopes of further policy easing by the Federal Reserve.

Following November inflation data in the world’s largest economy, traders raised their rate cut bets for 2025, now expecting a cut first in March and then again by October.

The Fed’s decisions have a significant impact on the Gulf region’s monetary policy, as most currencies there are pegged to the U.S. dollar.

Saudi Arabia’s benchmark stock index bounced back after two consecutive sessions of losses and gained 0.8%, with most sectors in the green.

Insurer Medgulf climbed 4.2% after it signed a contract to provide health insurance services to the state-owned Saudi Electricity .

Knowledge Economic City Company gained 1.4% after the developer said it has signed an agreement with Sidra Capital and Raseel Properties to establish a 1.04-billion riyals ($276.75 million) investment fund.

The Abu Dhabi benchmark index was up 0.5%. Food retailer and real estate investor MAIR Group surged 12.4%, while Abu Dhabi National Energy Company gained 1.9%.

Energy firm TAQA said on Friday that its 43%-owned Masdar had completed the acquisition of Saeta Yield for an implied enterprise value of EUR 1.2 billion ($1.25 billion).

Dubai’s benchmark stock index was little changed, with Emaar Properties slipping 1.6% and Emirates NBD , Dubai’s largest lender, rising 3.7%.

The Qatari benchmark index fell 0.2%, with most sectors in negative territory. Qatar National Bank , the region’s largest lender, fell 0.7% and telecom service provider Ooredoo shed 0.5%.

Meanwhile, Qatar’s energy minister told the Financial Times on Sunday that the country would stop shipping gas to the European Union if member states strictly enforce a new law cracking down on forced labour and environmental damage.

Outside the Gulf, Egypt’s blue-chip index was down for a second day, dropping 0.8%, with almost all stocks posting losses. Commercial International Bank slipped 1.1% and EFG Holding slid 2.6%.

“(The) market trended lower as (a)correction phase continued, with prices seeing strong volatility,” said Hani Abuagla, senior market analyst at XTB MENA.

“The market also awaits signs of improved economic stability to boost investor sentiment.”

($1 = 3.7573 riyals)

(Reporting by Md Manzer Hussain; Editing by Pooja Desai)