Mideast Stocks: Most Gulf markets fall on worries of more U.S. rate hikes

Mideast Stocks: Most Gulf markets fall on worries of more U.S. rate hikes

Most Gulf bourses ended lower on Monday that the U.S. Federal Reserve might keep interest rates higher for longer due to a resilient economy. Data on Friday showed the U.S. personal consumption expenditures price index shot up 0.6% last month after gaining 0.2% in December, bringing back fears of a hawkish central bank.

Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.

The benchmark index in Saudi Arabia ended 0.6% lower at 9,995, its lowest close since April 2021. The world's largest Islamic bank by assets, Al Rajhi Bank , declined 1.6%, while oil giant Aramco slid 1.3%. Fertilizer maker SABIC Agri-Nutrients, however, gained 2.7% after reporting a 92% jump in annual net profit.

In Abu Dhabi, the index fell 0.3%, extending its losses to a second session. The index was pulled down by a 1.3% drop in Abu Dhabi Commercial Bank and a 3.3% slide in Americana Restaurants International.

Dubai's benchmark index fell marginally, cushioned by gains in real estate, utilities and financial sectors, with Emaar Properties rising 1.3% and Dubai's largest lender Emirates NBD adding 0.4%. Among the losers, United Arab Emirates-based commercial lender Commercial Bank of Dubai and Deyaar Development dropped 1.9% and 1.2%, respectively. Real estate developer Deyaar's board said it would seek shareholders' nod on not to distribute any dividend for the fiscal year 2022.

The Qatari Stock index ended slightly lower, with the losses in financial and communications sectors partly offset by the gains in industrial, materials and energy sectors. The gulf region's largest lender Qatar National Bank rose 1.8% and Qatar Navigation gained 2.8%. Gulf's largest insurer Qatar Insurance plunged 8.3% after it surged nearly 10% for two consecutive sessions. The insurer said on Sunday its listed unit in Oman, Oman Qatar Insurance, acquired another listed rival Vision Insurance.

Outside the Gulf, Egypt's blue-chip index fell 0.6%, ending two sessions gaining streak. The index was weighed down by losses in most sectors, with Commercial International Bank dropping 2% and Egypt Kuwait Holding losing 0.9%. Egypt-based automotive company GB Auto, however, rose 3.6% after it reported a rise in fourth-quarter profit.