Stock markets in the Gulf ended subdued on Wednesday ahead of the quarterly earnings season as oil prices declined. However, the growing anticipation of imminent U.S. rate cuts improved sentiment.
Saudi Arabia’s benchmark index (.TASI) closed flat after four sessions of gains.
“The Saudi bourse market experienced limited movements today, remaining relatively flat as the market continues its uncertain trajectory within a price range,” said Joseph Dahrieh, Managing Principal at Tickmill.
Saudi Aramco (2222.SE) has begun a three-part bond sale, which could raise at least $3 billion, according to a source familiar with the matter.
Despite this, shares of Aramco were down 0.2%.
Dubai’s main share index (.DFMGI) gained 0.1%, supported by a 1.3% rise in Emirates Central Cooling Systems Corp (EMPOWER.DU).
Fed Chair Jerome Powell indicated to Congress that the U.S. economy is “no longer an overheated economy” and that the job market has cooled from its pandemic-era extremes, suggesting that the case for interest rate cuts is strengthening.
In Abu Dhabi, the index (.FTFADGI) also closed flat.
Dahrieh noted that uncertainty has persisted in Abu Dhabi over the last three sessions due to declining oil prices, which has limited the possibility of a rebound in the Saudi market.
Crude prices, a key factor for the Gulf’s financial markets, steadied as the Organization of the Petroleum Exporting Countries (OPEC) maintained its growth forecast for oil demand for this year and next.
Meanwhile, U.S. crude and gasoline inventories likely fell last week. Brent futures were down 11 cents, or 0.1%, at $84.55 a barrel at 1212 GMT, after a 1.3% drop in the previous session.
Outside the Gulf, Egypt’s blue-chip index (.EGX30) slipped 0.6%, impacted by a 1% decline in Talaat Mostafa Holding (TMGH.CA).