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Corporate earnings are mixed as most Gulf shares increase on Fed rate reduction hopes

The Gulf stock markets were mostly higher on Thursday morning, as global stocks rose, after positive U.S. inflation figures raised hopes for a Federal Reserve rate reduction, and mixed earnings reports from the region.

After data released this week revealed that U.S. consumer inflation rose at a moderate rate in July, traders expect the Fed will cut rates.

The U.S. monetary policy changes have a major impact on Gulf markets where the majority of currencies are pegged with the dollar.

Qatar's benchmark index gained 0.8% with nearly all components advancing. Qatar National Bank gained 1.7%, while Qatar Islamic Bank rose 1.2%.

Dubai's benchmark index rose 0.4% on the back of gains in the real estate, finance, industry and utilities sectors. Emaar Properties, a blue-chip developer, rose 1%. Salik, a toll operator, advanced 3.8%. Salik reported a 49.6% rise in its second-quarter net profits on Wednesday. This was a significant increase, surpassing estimates.

Air Arabia's share price fell 0.8%, as the low-cost airline reported a 10% decline in its second quarter net profit.

Saudi Arabia's benchmark index of stocks rose 0.1% thanks to gains in consumer staples and finance.

Saudi industrial investment rose by 4.4%, and Saudi National Bank, which is the largest lender in the Kingdom according to assets, gained 0.9%. Saudi Printing and Packaging's shares soared by 8.4% following the announcement that it had signed a financing deal with Saudi Research and Media Group.

The benchmark Abu Dhabi index traded within a narrow range, as gains in real estate, technology and industrial stocks were offset by losses in consumer staples and energy shares.

RAK Properties rose 1.3% following the announcement of a 95% increase in net profit for the second quarter. Investcorp Capital fell 1.3% on Thursday after it reported a 22% decline in its full-year profit.

(source: Reuters)