Economic news

Most Gulf Markets Gain as US Inflation Data Eyed

Feb 27 (Reuters) - Most stock markets in the Gulf ended higher on Tuesday as investors await key U.S. economic data due later in the week.

Inflation data from several major economies and manufacturing figures out of China are in focus this week. Most closely monitored will be Thursday's release of the U.S. personal consumption expenditures price index, which the Federal Reserve uses to track its 2% inflation target.

Markets have already pushed out the potential timing of first easing of rates from May to June, with the current probability priced at around 70%. Futures imply a little more than three quarter-point cuts this year, down from five at the beginning of the month. 

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually followed by Qatar, the United Arab Emirates and Saudi Arabia.

Saudi Arabia's benchmark index gained 0.6%, led by a 0.5% rise in Al Rajhi Bank and a 2% increase in Saudi Arabian Mining Co.

Elsewhere, Avalon Pharma surged 30% in market debut.

In Abu Dhabi, the index added 0.3%.

Dubai's main share index advanced 1.2%, with top lender Emirates NBD jumping 4%.

Separately, the Dubai government is selling a 24.99% stake in Parkin, which oversees public parking operations in the emirate, through an initial public offering in the emirate's first privatisation deal this year, Parkin said in a statement on Tuesday.

The Qatari benchmark finished 0.5% higher, as most of its constituents were in positive territory including Qatar Islamic Bank, which was up 1.1%.

Outside the Gulf, Egypt's blue-chip index rose 0.9%.

Egypt's international bonds soared and its currency forwards strengthened on Monday, extending a sharp rally after it signed a $24 billion investment deal with the United Arab Emirates centred on a real estate development on the Mediterranean coast.


 rose 0.6% to 12,602


 up 0.3% to 9,288


 gained 1.2% to 4,273


 added 0.5% to 10,497


 rose 0.9% to 29,205


 eased 0.5% to 2,043


 lost 0.4% to 4,578


 added 0.4% to 8,158

Reporting by Ateeq Shariff in Bengaluru; Editing by Shilpi Majumdar

Source: Reuters

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