Mideast Stocks: Most major Gulf markets open lower on Fed caution; Dubai rises

The Commercial Bank (P.S.Q.C.)

09/02/2023 08:49

By Md Manzer Hussain
       Feb 9 (Reuters) - Most major Gulf markets tracked global
peers lower on Thursday as expectation of higher interest rates
by the U.S. Federal Reserve weighed on investor sentiment.
    Federal Reserve officials said more interest rate rises are
on the cards as the U.S. central bank moves ahead with efforts
to control inflation. 
    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 direct impact from
monetary tightening in the world's largest economy.
    The Qatari Stock index  .QSI  fell 0.6%, dragged down by
losses in almost all sectors, with Gulf's largest lender Qatar
National Bank dropping 1.1%.
    The index heavyweights, Islamic banks Qatar International
Islamic Bank and Masraf Al Rayan, dropped 2.4% and 1.5%
respectively.
    Saudi Arabia's benchmark stock index  .TASI  traded 0.6%
lower, weighed down by losses in most sectors with oil giant
Saudi Aramco falling 0.9% and Al Rajhi Bank losing 0.8%.
        The luxury real estate developer Retal Urban and Savola
Group dropped 0.3% and 2%, respectively.
    In Abu Dhabi, the benchmark stock index  .FTFADGI  fell
0.2%, dragged down by a 2.5% loss in Al Dar Properties and 0.4%
fall in largest lender by assets, First Abu Dhabi Bank.
    ADNOC Distribution fell 0.9% after it posted a decline in
quarterly net profit.
    Dana Gas slid 1.7% as it reported on Wednesday a fall in
full year net profit.
    Dubai's benchmark stock index  .DFMGI  rose 0.8%, lifted by
gains in most sectors with Mashreq Bank jumping 5.2% and tolls
operator Salik gaining 1.1%.
    United Arab Emirates- based utility provider Dubai
Electricity and Water Authority rose 2.5% after it reported 8
billion dirhams ($2.18 billion) in full year net profit, a 22%
increase from year earlier.
 (Reporting by Md Manzer Hussain; Editing by Christina Fincher)
 ((MdManzer.Hussain@thomsonreuters.com;))