Mideast Stocks: Gulf markets end mixed on oil price, US rate cut hopes

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Stock markets in the Gulf closed mixed on Wednesday amid rising oil prices and expectations of additional U.S. interest rate reductions.

Oil prices, the catalyst for the Gulf's financial markets, climbed more than 1%, helped by a smaller-than-expected output hike from producer group OPEC+ next month, though concerns about oversupply capped gains.

Investor sentiment was further buoyed after the World Bank lifted its growth outlook for the region encompassing the Middle East, North Africa, Afghanistan and Pakistan for 2025. It, however, trimmed its forecast for next year, citing conflict and lower oil production in Iran and Libya.

Dubai's main share index rose 0.3%, helped by a 1.8% rise in top lender Emirates NBD. As the U.S. government shutdown extends into a second week, investors have had to rely on secondary, independently produced U.S. data, along with remarks from monetary policymakers, to gauge the likelihood that the Federal Reserve will implement its second rate cut of the year at this month's policy meeting.

Traders are pricing in 45 basis points of easing this year. The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.

In Abu Dhabi, the benchmark stock index finished 0.5% higher, led by a 2.3% jump in ADNOC Gas. ADNOC said on Wednesday six listed subsidiaries, including ADNOC Gas, will pay 158 billion dirhams ($43.02 billion) in dividends by 2030.

ADNOC Gas also secured a 146.9 billion dirhams Ruwais LNG contract, with over 80% capacity committed. Saudi Arabia's benchmark stock index fell 0.2%, with petrochemical maker Saudi Basic Industries losing 1.1%.

The Qatari stock index eased 0.1%, dragged by a 1.2% fall in Industries Qatar. Outside the Gulf, Egypt's blue-chip index advanced 0.8%, buoyed by a 2.8% rise in Talaat Moustafa Group Holding.

Egypt's annual urban consumer price inflation slowed to 11.7% in September from 12% in August, data from statistics agency CAPMAS showed on Wednesday, a deceleration less than what analysts in a Reuters poll had anticipated.