Mideast Stocks: Gulf bourses end mixed; Saudi slips

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Stock markets in the Gulf were mixed on Tuesday amid falling oil prices, while further signs of a sharp U.S. factory slowdown boosted hopes of interest rate cuts from the Federal Reserve this year.

Oil prices, a catalyst for the Gulf's financial markets, declined by 1.4%, with Brent trading at $77.25 a barrel by 1336 GMT.

Saudi Arabia's benchmark stock index dropped 1.7% after two straight sessions of gains with all of its constituents posting loss. ACWA Power fell 2.5% and Saudi Aramco slipped 2.4% to 28.2 riyals per share, its lowest level in more than one year.

Saudi Arabia is offering investors about 1.545 billion Aramco shares, at 26.7 to 29 riyals. Separately, growth in non-oil business activity in Saudi Arabia eased in May as new orders rose at the slowest pace in 25 months, a survey showed on Tuesday.

Dubai's benchmark index eased 0.2% after three straight sessions of gains, dragged down by losses in real estate and industry sectors.

The low-cost flyer Air Arabia slipped 4.1% and Emaar Properties slid 1.1%.

The Abu Dhabi benchmark index was little changed with conglomerate International Holding Co shedding 0.4% and Abu Dhabi Islamic Bank sliding 1.5%, while ADNOC Drilling Co climbed 3.5%.

The Qatari benchmark index was up for a fourth consecutive session to end 0.6% higher, supported by a 3.3% gain in Qatar Navigation and a 2.2% increase in Qatar Gas Transport. Meanwhile, state-owned energy giant QatarEnergy has entered into 10-year naphtha supply agreement with Japan's Idemitsu Kosan.

Markets are now pricing in a nearly 62% chance of the Fed cutting rates in September, up from about 53% before manufacturing data was released. Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt's blue-chip index was up 0.5%, snapping its six session losing-streak. Eastern Company rose 3% and EFG Holding advanced 3.4%. Egypt is targeting $30 billion in foreign direct investment in the 2024/25 fiscal year starting July 1, a budget statement showed on Monday.