Major stock markets in the Gulf fell on Sunday, led by the Qatar index amid receding expectations for US interest rate cuts following resilient economic data and hawkish comments from the Fed’s last policy meeting.
The Qatari benchmark index was down for a third day, falling 1.7% to 9,396, its lowest level in nearly seven months, with all constituents posting losses.
Industries Qatar dropped 1.3% and Qatar National Bank, the region’s largest lender, slipped 2.2%.
KSE-100 closes shy of 76,000 after gaining on UAE’s announcement, ‘progress’ on IMF front
Saudi Arabia’s benchmark index declined 1.2% to close at 11,851, its lowest in about four months with almost all sectors in the red.
Al Rajhi Bank, the world’s largest Islamic lender, slipped 1.4% and Saudi Aramco lost 1.7%. Saudi Arabia, the oil major’s owner, is planning a multi-billion-dollar share sale in Aramco as soon as June.
However, ADES Holding gained 1.8% after the oil and gas driller was awarded a 2.42 billion riyals ($645 million) contract by Kuwait Oil Co.
Robust economic data from the US on Thursday showed an acceleration in business activity in May, and hawkish US Federal Reserve minutes released on Wednesday led traders to dial back their bets on rate cuts this year.
Most Gulf currencies are pegged to the dollar, and any US monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
UAE markets track oil prices lower
Outside the Gulf, Egypt’s blue-chip index gained 1.2%, aided by gains in most sectors with Eastern Company climbing 2.9% and Madinet Masr rising 4.3%.
The developer posted a 286% surge in its first-quarter net profit.
Meanwhile, Egypt’s central bank kept its overnight interest rates steady on Thursday, saying that while economic growth had slowed, rising non-food inflation had offset a steady decline in food inflation.
SAUDI ARABIA fell 1.2% to 11,851
KUWAIT ended flat at 7,783
QATAR dropped 1.7% to 9,396
EGYPT rose 1.2% to 27,539
BAHRAIN ended flat at 2,020
OMAN gained 0.1% to 4,806
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