Gulf stock markets ended mixed on Tuesday, as investors awaited a speech from Federal Reserve Chair Jerome Powell that could offer clues on the U.S. central bank's rate-hike path, while a selloff dented Egypt.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar, exposing them to direct impacts from any Fed monetary tightening.
Crude oil prices, a major driver for Gulf economies, edged lower on Tuesday as data shows crude shipments into China fell in January and February, fuelling demand concerns in the world's largest importer. Brent crude futures LCOc1 fell 41 cents, or 0.48%, to $85.77 a barrel by 1250 GMT.
The Federal Reserve might steal the spotlight as stock markets in GCC are exposed to rate hike concerns and volatility in energy prices, said Fadi Reyad, chief market analyst at CAPEX.com MENA.
Saudi Arabia's benchmark index edged up 0.2%, on course to extend gains for a sixth session, boosted by a 1.3% hike in index heavyweight and oil giant Saudi Aramco. The Export-Import Bank of Korea signed a framework deal worth $6 billion with Saudi Aramco on Tuesday. Aramco is due to report its annual earnings on Sunday.
The Qatari benchmark index rose 0.3%, extending gains to a fifth consecutive session, helped by its banking stocks. The Gulf's biggest bank by assets, Qatar National Bank- QNB, and heavyweight Commercial Bank rose 1.8% and 0.7%, respectively.
Abu Dhabi's share index fell 0.5%, dragged down by a 0.5% decline in conglomerate International Holding Co (IHC). IHC and Abu Dhabi state holding firm ADQ announced on Monday that they intend to create a multi-asset class investment manager.
Dubai's main share index dropped 0.8%, dragged down by its real estate and financial stocks. Blue-chip developer Emaar Properties tumbled 3.3%, its biggest intraday decline in more than five months, while road tolls operator Salik was down 2.8%
Outside the Gulf, Egypt's blue-chip index closed 2.2% lower, extending its losing streak to the fourth consecutive session. The index was dragged down by a 2.3% loss in Commercial International Bank Egypt and a 3.4% dive in country's lone cigarette maker Eastern Company. As international investors continued to sell, the Egyptian stock market could extend losses, added Fadi.
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