Mideast Stocks: Gulf Bourses Mixed in Early Trade Ahead of Fed’s Decision

Stock markets in the Gulf put in a mixed performance in early trade on Monday ahead of the U.S. Federal Reserve's policy decision this week, where investors expect the central bank to resume its easing cycle.

Markets are 100% priced for 25 basis points of easing from the Fed, taking its key rate to 4.0-4.25%, with futures implying just a 4% chance of 50 basis points.

Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

Dubai's benchmark stock index was up 0.2%, aided by gains in consumer staples, industry and utilities shares. Gulf Navigation climbed 3.2% and Tecom Group gained 1.8%. Emirates Integrated Telecommunications known as du, slipped 1%.

Telecoms firm du's shareholder Mamoura Diversified Global Holding sold a 7.55% stake in the company for 3.15 billion dirhams ($858 million) through a secondary share sale.

The Abu Dhabi benchmark index advanced 0.3% as most of its constituents posted gains. Abu Dhabi Islamic Bank added 1.4% and Multiply Group gained 2.1%.

Space42, however, slipped 1%. AI-powered space-tech company Space42 and Viasat have announced plans to set up Equatys, a JV aimed at enabling global Direct-to-Device (D2D) services.

Saudi Arabia's benchmark stock index eased 0.2%, pressured by finance and healthcare stocks. Al Rajhi Bank slipped 1.8%, after the world's largest Islamic lender declared an interim cash dividend of SAR 0.75 per share, down 40% from SAR 1.25 per share year earlier.

Fawaz Abdulaziz Al Hokair & Co advanced 6%. The retailer said on Sunday it has signed a 1.60 billion riyal ($426.53 million) banking facility agreement with Emirates NBD Bank – Kingdom of Saudi Arabia to prepay debts.

The Qatari benchmark index was little changed with Qatar National Bank, adding 0.1% while Industries Qatar fell 0.3%.

($1 = 3.7512 riyals)