Gulf Stocks Gain on Earnings Optimism, Ahead of US Fed Outlook
July 30 – Gulf stock markets saw a rebound on Wednesday amid volatile trade, as investors brushed off lackluster earnings and moved toward selective buying strategies. The rally comes as the region braces for important corporate results and today’s much-anticipated U.S. Federal Reserve policy decision.
While the Fed is largely expected to maintain its current stance on interest rates, speculation over a possible dovish dissent has fueled sentiment and stabilized prospects across markets. Given that many Gulf currencies are pegged to the U.S. dollar, the Fed’s monetary stance remains a cornerstone of regional monetary policy and economic stability.
In Saudi Arabia, the benchmark index climbed by 0.8%, underpinned by broad-based sector gains. Investor momentum increased in anticipation of earnings releases from SABIC and Aramco, two of the region’s most influential companies, expected next week.
Shares of Halwani Brothers were especially volatile. The stock plunged nearly 5% intraday following disclosure of a sharp fall in quarterly profits, only to recover strongly and close up more than 4%, displaying a mix of sell-offs, bargain hunting, and short-covering behavior.
In the United Arab Emirates, Dubai’s benchmark index rose 0.5%, reaching a fresh 17.5-year high, buoyed by six consecutive sessions of gains. Gains were primarily supported by a 1.5% uptick in Salik, the city’s toll road operator, with market optimism centered around forthcoming real estate sector earnings.
The Abu Dhabi index posted a 0.1% rise, driven by selective investor activity amid a mixed but largely supportive earnings season. ADNOC Drilling added 1%, encouraged by a strong growth trajectory and upbeat full-year outlook. Emirates Telecommunications Group (e&) recorded a 1.5% increase, ahead of its scheduled earnings release on Thursday.
In Qatar, the stock index edged up by 0.1%, putting an end to two sessions of profit-taking. Investors were positioning ahead of heavyweight corporate results, signaling cautious optimism.
Beyond earnings, market sentiment was influenced by external trade developments, notably the extension of the U.S.-China tariff truce scheduled to lapse on August 12. Both sides, following two days of talks, agreed to continue negotiations beyond the headline August 1 tariff deadline. Meanwhile, South Korea was mounting its own push for a trade agreement, with officials engaging U.S. Commerce Secretary Howard Lutnick in discussions in Washington.
The ongoing dialogue among the major global economies has mitigated fears over trade-related impacts on energy demand, offering some resilience to the oil-reliant Gulf economies.
Outside the Gulf, Egypt’s blue-chip index slipped 0.7%, with investors engaging in profit-taking after the market hit a recent record peak. Shares of Talaat Moustafa Group were down 1.1%.
Team V.DIR-EM-UAE
