MIDEAST STOCKS-Most Gulf shares gain on US inflation relief; Egypt extends losses

By Md Manzer Hussain

Dec 23 (Reuters) - Most stock markets in the Gulf ended higher on Monday, in step with global equities, after cooler-than-expected U.S. inflation data revived hopes of further policy easing by the Federal Reserve.

Following November inflation data in the world's largest economy, traders raised their rate cut bets for 2025, now expecting a cut first in March and then again by October.

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.

Saudi Arabia's benchmark stock index .TASI bounced back after two consecutive sessions of losses and gained 0.8%, with most sectors in the green.

Insurer Medgulf 8030.SE climbed 4.2% after it signed a contract to provide health insurance services to the state-owned Saudi Electricity 5110.SE.

Knowledge Economic City Company 4310.SE gained 1.4% after the developer said it has signed an agreement with Sidra Capital and Raseel Properties to establish a 1.04-billion riyals ($276.75 million) investment fund.

The Abu Dhabi benchmark index .FTFADGI was up 0.5%. Food retailer and real estate investor MAIR Group MAIR.AD surged 12.4%, while Abu Dhabi National Energy Company TAQA.AD gained 1.9%.

Energy firm TAQA said on Friday that its 43%-owned Masdar had completed the acquisition of Saeta Yield for an implied enterprise value of EUR 1.2 billion ($1.25 billion).

Dubai's benchmark stock index .DFMGI was little changed, with Emaar Properties EMAR.DU slipping 1.6% and Emirates NBD ENBD.DU, Dubai's largest lender, rising 3.7%.

The Qatari benchmark index .QSI fell 0.2%, with most sectors in negative territory. Qatar National Bank QNBK.QA, the region's largest lender, fell 0.7% and telecom service provider Ooredoo ORDS.QA shed 0.5%.

Meanwhile, Qatar's energy minister told the Financial Times on Sunday that the country would stop shipping gas to the European Union if member states strictly enforce a new law cracking down on forced labour and environmental damage.

Outside the Gulf, Egypt's blue-chip index .EGX30 was down for a second day, dropping 0.8%, with almost all stocks posting losses. Commercial International Bank COMI.CA slipped 1.1% and EFG Holding HRHO.CA slid 2.6%.

"(The) market trended lower as (a)correction phase continued, with prices seeing strong volatility," said Hani Abuagla, senior market analyst at XTB MENA.

"The market also awaits signs of improved economic stability to boost investor sentiment."

($1 = 3.7573 riyals)

(Reporting by Md Manzer Hussain; Editing by Pooja Desai)

((mdmanzer.hussain@thomsonreuters.com; +91 8067498453;))