Most major stock markets in the Gulf fell in early trade on Monday, dragged lower by expectations the Federal Reserve will increase interest rates, although the Qatari index bucked the trend.
The Fed is predicted to raise rates by another 25 basis points this week.
The US central bank has raised its policy rate by 475 basis points since March last year from the near-zero level to the current 4.75%-5.00% range.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the US dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
Dubai's main share index fell 0.1%, hit by a 1.1% fall in Emirates NBD Bank and a 0.8% decrease in utility firm Dubai Electricity and Water Authority.
In Abu Dhabi, the index declined 0.6%, with lender First Abu Dhabi Bank (FAB) retreating 1.4%, on course to snap a five-day winning streak.
Most Gulf markets track global shares higher
FAB, the UAE's biggest lender by assets, on Thursday, reported a 23% fall in first-quarter net profit but said its loans and deposits grew, supported by momentum in the business and commercial environment.
Saudi Arabia's benchmark index was flat in a choppy trade.
Oil prices - a catalyst for the Gulf's financial markets -fell as nervousness over the economic impact of any US Federal Reserve interest rate rise and weaker Chinese manufacturing data outweighed the support of OPEC+ supply cuts taking effect this month.
In Qatar, the index bucked the trend to trade 0.5% higher, with telecoms firm Ooredoo up more than 5%.
Comments
Comments are closed.