Most stock markets in the Gulf ended lower on Wednesday, ahead of an expected Federal Reserve interest rate hike later in the day, with the Saudi index registering its biggest intraday fall in nearly two months.
In their efforts to tame inflation, the U.S. Federal Reserve is expected to hike rates by an additional 25 basis points on Wednesday, while the European Central Bank is also expected to raise rates at its regular policy meeting on Thursday.
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.
Saudi Arabia's benchmark index (.TASI) declined 1.3% with Al Rajhi Bank (1120.SE) losing 1.5%, while Alinma Bank (1150.SE) retreated 5.7% as the lender missed market expectations for the first quarter.
In Abu Dhabi, the index (.FTFADGI) dropped 0.3%, with the country's biggest lender First Abu Dhabi Bank (FAB.AD) losing 0.9%.
Oil prices - a catalyst for the Gulf's financial markets - extended losses after plunging 5% in the previous session, as investors fretted about the health of the U.S. economy ahead of the expected Federal Reserve rate hike.
Dubai's main share index (.DFMGI) edged 0.1% higher, helped by a 3.7% jump in Tecom Group (TECOM.DU) after the business park operator reported a 34% rise in first-quarter net profit.
The Qatari benchmark (.QSI) advanced 1.5%, extending gains for a sixth session, with telecoms company Ooredoo (ORDS.QA) climbing more than 5%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished flat.
Egypt's non-oil private sector activity shrank for the 29th consecutive month in April as import and currency restrictions and surging prices caused business confidence to hit an all-time low, a survey showed on Wednesday.
The S&P Global Egypt Purchasing Managers' Index (PMI) improved to 47.3 in April from 46.7 in March, but remained below the 50.0 threshold that marks growth in activity.
No comments:
Post a Comment