Gulf bourses mixed in early trading

Stock markets in the Gulf were mixed in early trading on Monday amid steady oil prices, while investors awaited further cues on the US Federal Reserve’s interest rate outlook.

Oil prices, a catalyst for the Gulf’s financial markets, were steady as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.32 a barrel at 0740 GMT.

Dubai’s benchmark stock index rose 0.4%, helped by gains in the consumer staples, finance and industry sectors.

Commercial Bank of Dubai climbed 8.8% and Parkin Company added 1.1%.

Saudi Arabia’s benchmark index was up 0.3%, supported by gains in most sectors, with Saudi National Bank , the kingdom’s largest lender, rising 1.4% and Dr Sulaiman Al Habib Medical adding 1.1%.

In Abu Dhabi, the benchmark stock index was little changed, with conglomerate Alpha Dhabi Holding and crypto mining firm Phoenix Group gaining 0.7% and 2.3% respectively, while Abu Dhabi Commercial Bank, the UAE’s third-biggest lender, dropped 2.3%.

The Qatari benchmark index fell 0.5%, pressured by a 1.6% drop in Qatar National Bank, the region’s largest lender, and a 1.1% fall in United Development Co.

Friday’s US personal consumption expenditures reading will be crucial for investors, giving them an idea of whether the Federal Reserve will be in a position to lower borrowing costs.

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