Most Gulf bourses fall, focus on Powell's testimony | Reuters

Most Gulf bourses fall, focus on Powell's testimony | Reuters

Most stock markets in the Gulf fell in early trade on Wednesday as investors remained cautious ahead of U.S. Federal Reserve Chair Jerome Powell's congressional testimony.

Powell is scheduled to deliver congressional testimonies on monetary policy on Wednesday and Thursday. Markets expect around a 78% chance of a hike to 5.25-5.5% next month, with that likely to be the end of the monetary policy tightening cycle. 

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

In Qatar, the benchmark share index (.QSI) fell 0.4%, with most sectors trading in the red. Shares of Doha Bank (DOBK.QA) and Qatar International Islamic Bank (QIIB.QA) slid 2.9% and 1.1% respectively.

The region's largest lender Qatar National Bank (QNBK.QA) lost 0.8%.

Dubai's benchmark stock index (.DFMGI) eased 0.3%, weighed down by losses in finance, industry and utilities sectors, with Emaar Properties shares (EMAR.DU) falling 0.5% and Dubai Electricity and Water Authority (DEWAA.DU) down 0.8%.

Saudi Arabia's benchmark stock index (.TASI) slipped 0.1%, dragged down by losses in finance and health care sectors with Riyad Bank (1010.SE) falling 1.1% and Banque Saudi Fransi (1050.SE) 1.4% lower.

Shares in the world's largest Islamic bank by assets, Al Rajhi Bank (1120.SE) lost 0.5%.

Still, shares of Morabaha Marina Financing Co shot up as much as 20% to 17.6 riyals in its market debut from an offer price of 14.6 riyals per share.

In Abu Dhabi, the benchmark stock index (.FTFADGI) was up 0.1%, helped by a 2.1% rise in Q Holding (QHOLDING.AD) and 1.6% gain in ADNOC Gas (ADNOCGAS.AD).

Separately, Abu Dhabi National Oil Company (ADNOC), the parent company of ADNOC Gas, has approached German plastics and chemicals maker Covestro with a takeover proposal valuing the company at more than 10 billion euros ($10.9 billion), Reuters reported on June 20.