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Mixed earnings caps gains; most Gulf shares increase on Fed rate reduction hopes

The majority of Gulf stocks rose on Wednesday as they tracked a global rally in stock markets after a softer U.S. Inflation data raised hopes for a Federal Reserve Rate Cut in September. However, mixed earnings reports from the region weighed down sentiment.

Consumer prices in the United States increased by 0.2% from one month to another. The print in line increased the odds of a Fed cut to next month's rate from 86% to 94%.

The U.S.'s monetary policy changes have an important impact on Gulf markets where the majority of currencies are pegged with the dollar.

Saudi Arabia's benchmark index of stocks bounced back on Wednesday after hitting a two-month low. It rose 0.3%, with the majority of its constituents posting gains.

ACWA Power rose 3.3% while Mohammed Hasan AlNaqool Sons Co soared 4.7% following the concrete manufacturer's 73% increase in net profit for half-year.

Most constituents of the Qatari benchmark index gained 0.4%. AlRayan Bank rose 2%, and Qatar Islamic Bank gained 1. Mesaieed - Petrochemical, on the other hand, fell 0.2%, after reporting a 5% drop in its half-year net profits.

Dubai's benchmark index fell 0.3% due to losses in the real estate, finance and industry shares. Blue-chip developer Emaar Properties fell 1.3%. Al Ansari Financial Services fell 1% following a 3% drop in the second quarter net profit of the region's biggest non-banking finance firm.

Amlak Finance, the real estate financier that posted a net loss for the second quarter on Tuesday, was the largest decliner. Its shares fell 3.7% early in the morning.

The benchmark Abu Dhabi index was flat as gains in consumer staples and energy stocks were offset by losses in real estate, technology and industry shares. Lulu Retail rose 1.7% following the retailer's announcement of a 9.1% increase in its half-year profits and a 1.8% rise in second-quarter profit.

Alpha Data's shares fell 2.2%, as the technology services company reported a 4.9% decline in its second-quarter profit. (Reporting and editing by Md. Manzer Hussain)

(source: Reuters)