Mideast Stocks: Most Gulf markets retreat ahead of Fed meet; Saudi rebounds

Eastern

13/12/2022 13:33

By Ateeq Shariff
       Dec 13 (Reuters) - Most stock markets in the Gulf ended
lower on Tuesday ahead of a reading of U.S. inflation on the eve
of a Federal Reserve policy decision which could set the tone
for the year ahead, while the Saudi index rebounded from a
20-month low.
    The Fed will announce its latest policy decision on
Wednesday, followed by a slew of other central banks, as markets
are expecting a smaller 50 basis points hike from the Fed.
    But investors are focused is on its forward-looking
commentary about monetary policy and the economy.
    Most Gulf Cooperation Council countries, including Saudi
Arabia, the United Arab Emirates and Qatar, have their
currencies pegged to the U.S. 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.
    In Abu Dhabi, the index  .FTFADGI  dropped 1%, extending
losses for a sixth consecutive session, weighed down by a 3.1%
slide in the country's biggest lender First Abu Dhabi Bank
 FAB.AD .
    The Abu Dhabi bourse continued to record price corrections
but could see a reversal if oil prices rebound more consistently
in the future, Daniel Takieddine, CEO MENA at BDSwiss, said.
    "The market could also react to the Federal Reserve's
decision."
    Dubai's main share index  .DFMGI  dipped 0.5%, hit by a 1.9%
fall in Emirates NBD Bank  ENBD.DU .
    Separately, the United Arab Emirates (UAE) will host the
next major meeting of the World Trade Organization set to take
place by March 2024, according to three trade sources familiar
with the matter, citing a preliminary agreement.
    The Qatari index  .QSI  retreated 1.6%.
    Saudi Arabia's benchmark index  .TASI , however, bucked the
trend to close 1.9% higher, a day after it hit its lowest in 20
months.
     Oil - a key catalyst for the Gulf's financial markets -
pared gains after rising by over $1 earlier in the session, as
declining optimism over a Chinese oil demand recovery capped
support from supply disruptions.
    Outside the Gulf, Egypt's blue-chip index  .EGX30  jumped
2.9%, as most of the stocks on the index were in positive
territory including tobacco monopoly Eastern Company  EAST.CA ,
which ended up 8.3%.
 SAUDI ARABIA   .TASI  rose 1.9% to 10,221
 ABU DHABI      .FTFADGI  fell 1% to 10,050
 DUBAI          .DFMGI  down 0.5% to 3,300
 QATAR          .QSI  dropped 1.6% to 11,184
 EGYPT          .EGX30  leapt 2.9% to 15,150
 BAHRAIN        .BAX  eased 0.1% to 1,852
 OMAN           .MSX30  added 0.4% to 4,899
 KUWAIT         .BKP  declined 0.4% to 8,221
 (Reporting by Ateeq Shariff in Bengaluru; editing by David
Evans)
 ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))