Most stock markets in the Gulf ended lower on Thursday as investors awaited U.S. Federal Reserve Chair Jerome Powell’s speech for further clues on the interest rate path.
Markets perceived Powell’s tone to be less hawkish following the Fed’s decision to keep interest rates steady last week, but he did not comment on monetary policy or economic outlook of the U.S. in a speech on Wednesday.
Powell is due to speak again on Thursday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index dropped 1.8%, weighed down by a 1.8% fall in Etihad Atheeb Telecommunication and a 1.8% decrease in Elm Co.
Elsewhere, Maharah for Human Resources Company plunged 9.9%, its biggest intraday fall in over 1-1/2 years, after reporting a sharp decline in quarterly profit.
Most major Gulf markets track Asian shares lower
The Saudi stock market returned to the downside after trading sideways for a couple days, said George Khoury, Global Head of Education and Research at CFI.
“The market could continue to be affected by the mitigated company earnings and declining oil prices as well as changing monetary policy expectations.”
Dubai’s main share index declined 0.9%, hit by a 1.6% fall in toll operator Salik Co.
In Abu Dhabi index eased 0.2%.
The Brent crude oil benchmark hovered around $80 a barrel on Thursday, with demand concerns and a waning war-risk premium having triggered a selloff over the past week.
The Qatari benchmark slipped 0.6%, as most of the stocks on the index were in negative territory including Qatar Islamic Bank, which retreated 0.9%.
Outside the Gulf, Egypt’s blue-chip index advanced 1.4%, closing at its highest, with Commercial International Bank rising 4.1%.
========================================= SAUDI ARABIA slipped 0.8% to 10,841 ABU DHABI fell 0.2% to 9,529 DUBAI lost 0.9% to 3,929 QATAR dropped 0.6% to 9,977 EGYPT rose 1.5% to 24,344 BAHRAIN was up 0.3% to 1,932 OMAN down 0.4% to 4,539 KUWAIT added 0.5% to 7,234=========================================