MIDEAST STOCKS-Gulf shares end mixed; Egypt extends losses

* Oil prices gain 0.6% * US central bank policymakers lower rate cut projections * Egypt’s blue-chip index falls for third day By Md Manzer Hussain Dec 24 (Reuters) – Stock markets in the Gulf were mixed on Tuesday as oil prices held steady and investors anticipated fewer rate cuts by the U.S. Federal Reserve in the coming year. Oil prices, a catalyst for the Gulf’s financial markets, reversed the prior session’s losses and gained 0.6% with Brent trading at $73.06 a barrel by 1250 GMT. The Abu Dhabi benchmark index added 0.4%, extending its rally to a third session. First Abu Dhabi Bank , was up 2.1% and Palms Sports climbed 3.9%. Sports management company Palms said on Monday it has renewed a 206 million dirhams ($56.09 million) contract with UAE’s ministry of education. Dubai’s benchmark stock index rose 0.5%, lifted by gains in real estate, industry and finance stocks. Emaar Development advanced 2.4% and Emirates NBD , Dubai’s largest lender, gained 1%. Shuaa Capital surged 5.3% to its highest in over three months. The investment bank’s board approved on Friday a deal with a senior creditor to restructure 208 million dirhams ($56.64 million) in debt facilities. Saudi Arabia’s benchmark stock index was down 0.3%, with most sectors in the red. Dr Sulaiman Al Habib Medical Services slipped 1.3% and oil giant Saudi Aramco lost 0.9%. First Milling Co added 1.9% after its board approved the construction of a flour milling unit at an estimated cost of 123 million riyals ($32.75 million). The Qatari benchmark index eased 0.1%, pressured by a 1.1% decline in Qatar International Islamic Bank and a 1.7% drop in Qatar Gas Transport. U.S. central bank policymakers lowered their rate cut projections for 2025 to 50 basis points, from 100 basis points, and increased their inflation forecast. Traders are pricing in just about 35 basis points of easing for 2025. The Fed’s decisions have a significant impact on the Gulf region’s monetary policy, as most currencies there are pegged to the U.S. dollar. Outside the Gulf, Egypt’s blue-chip index was down for a third day, dropping 0.5%. Commercial International Bank slipped 1.4% and El Sewedy Electric lost 2.1%. Egypt’s central bank is expected to leave its overnight interest rates unchanged at a Dec. 26 meeting, a Reuters poll showed on Monday. SAUDI ARABIA down 0.3% to 11,914 KUWAIT up 0.3% to 7,844 QATAR fell 0.1% to 10,532 EGYPT lost 0.5% to 29,973 BAHRAIN ended flat at 1,988 OMAN down 0.2% to 4,486 ABU DHABI gained 0.4% to 9,435 DUBAI rose 0.5% to 5,080 (Reporting by Md Manzer Hussain; editing by Barbara Lewis)

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