Gulf markets were mixed yesterday as investors moved with caution after oil prices dropped the day before, dampening sentiment for riskier asset classes.
Qatar’s index advanced 1% led by Commercial Bank of Qatar, the country’s third-largest lender by assets, which jumped 2.1%.
Qatar Electricity and Water Co rose 0.6% after the Gulf state’s monopoly utility posted a 13.4% increase in second-quarter net profit, according to Reuters calculations.
Uncertainty weighed on regional stocks in the hours before the Bank of England’s first policy meeting since Britain voted to leave the European Union.
The Bank’s decision to hold rates steady came after Gulf bourses had closed but Riyadh and Cairo were still trading.
“There was some excitement ahead of the Bank of England meeting today as investors were expecting a rate cut,” said Vijay Harpalani, fund manager at Al Mal Capital in Dubai. “The weakness in oil prices yesterday impacted the sentiment.”
Oil prices dropped more than 3% on Wednesday after the International Energy Agency (IEA) cautioned that a global supply glut was threatening market recovery.
US futures declined as much as 4.4% to settle at $44.75 a barrel.
Abu Dhabi’s index increased marginally, led by banking stocks.
Union National Bank rose 0.2% even after the bank, which is 50% owned by the Abu Dhabi government, posted a 17.3% drop in second-quarter net profit.
Dubai’s benchmark was down 0.4%, weighed by Dubai Islamic Bank.
The Shariah-compliant lender declined 1.9%.
In Oman, stocks were mostly down, with the index down 0.9%.
Oman Telecommunications fell 2.4% even as its second quarter profits rose 19.9%, Reuters calculations showed.
Saudi Arabia’s Tadawul All-Share Index lost 0.4%, while Egypt’s EGX 30 Index lost 0.3%.
Elsewhere in the Gulf, the Kuwait index rose marginally by 0.09% to 5,390.70 points and the Bahrain index slipped 0.1% to 1,172.80 points.