MIDEAST STOCKS-Gulf stocks rise after regional central banks follow US Fed rate cut

By Amna Mariyam

Sept 18 (Reuters) - Most Gulf equities edged higher on Thursday after regional central banks cut interest rates by 25 basis points, mirroring the U.S. Federal Reserve’s widely expected move to support the labor market.

The Fed also signalled a measured path for further easing, leaving investors uncertain about the pace of future cuts.

Saudi Arabia's benchmark stock index .TASI rose 1.2% for a third straight session after the Saudi Central Bank matched the Fed with a 25-basis-point cut.

Utilities and IT stocks led gains. Arabian Internet and Communications Services 7202.SE jumped 5.4%, extending the prior session’s advance after it signed a digital infrastructure framework agreement with Saudi Aramco 2222.SE, which added 1.5%.

MBC Group 4072.SE surged 10% after its unit Istedamah Holding sold its entire stake in MBC to the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund.

Saudi equities may extend their rebound on private sector strength, but oil price volatility remains a key risk to sustained gains, said Ahmed Negm, Head of Market Research MENA at XS.com.

In the UAE, Abu Dhabi’s index .FTFADGI rose 0.6%, lifted by consumer staples and energy.

ADNOC Drilling ADNOCDRILL.AD climbed 4.4% in active trade, while ADNOC Distribution ADNOCDIST.AD and ADNOC Logistics ADNOCLS.AD gained 1.3% and 2.5%, respectively.

ADNOC’s international investment arm, ADNOC XRG, and its consortium partners withdrew a non-binding $18.7 billion bid for Australian gas producer Santos STO.AX, ending a takeover saga that lasted months.

Elsewhere, newly listed Orascom Construction ORAS.AD surged nearly 12% after three consecutive sessions of losses.

In contrast to its regional peers, Dubai's main share index .DFMGI gave up early gains to finish 0.2% lower, marking three straight sessions of losses, hit by a broad-based sectoral decline.

Commercial Bank of Dubai CBD.DU fell 3.7%, and Dubai Electricity and Water Authority DEWAA.DU shed 0.7%.

Real estate outperformed, with Emaar Properties EMAR.DU rising more than 1% after the developer dropped plans to sell a stake in its Indian entity and was considering a joint venture with larger firms, including Adani Group ADEL.NS.

Separately, the UAE's economy is projected to grow 4.9% in 2025, up from prior forecast of 4.4%, on higher oil production and strong growth in the non-hydrocarbon sector, the central bank said.

Qatar's benchmark .QSI added 0.7%, consolidating two days of gains on financials-led buying. Qatar National Bank QNBK.QA and Qatar Islamic Bank QISB.QA rose 1.4% and 1.7%, respectively.

Following the Fed, the central banks of the United Arab Emirates and Qatar slashed interest rates by 25 basis points.

Outside the Gulf, Egypt's blue-chip index .EGX30 gained 1.2%, lifted by a 7.4% jump in Eastern Company EAST.CA.