Most stock markets in the Gulf ended lower on Monday as investors turned cautious amid volatile oil prices and awaiting the next monetary policy moves by the U.S Federal Reserve.
Crude prices — a key catalyst for the Gulf's financial markets — were volatile with Brent traded down 3 cents at $88.52 a barrel by 0648 GMT and inching up to $88.60 a barrel by 1300 GMT.
Dubai's benchmark index (.DFMGI) was down 0.5%, after rising in the previous two sessions with tolls operator Salik (SALIK.DU) losing 1.8% and Emirates Central Cooling (EMPOWER.DU) shedding 2.2%.
The Qatari index (.QSI) extended its losing streak to a fourth straight session, closing 0.5% lower, with most sectors in the red.
Qatar National Bank (QNBK.QA), the region's largest lender, dropped 1.1% and Qatar Islamic Bank (QISB.QA) lost 1.5%.
In Abu Dhabi, the index (.FTFADGI) fell for a second consecutive session, ending 0.4% lower, weighed down by a 3.4% drop in ADNOC Drilling (ADNOCDRILL.AD) and 1.2% decline in UAE's largest lender First Abu Dhabi Bank (FAB.AD).
Futures now imply a 93% chance of rates staying unchanged this month and a 67% probability that the entire tightening cycle is over.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) was down 0.2%, extending its losses to a third consecutive session. The index was dragged down by a 0.4% fall in oil giant Saudi Aramco (2222.SE) and 3.3% slump in Savola Group (2050.SE).
"Traders were reacting to the developments in oil markets while expectations on the Federal Reserve monetary policy and China also affected sentiment", said Daniel Takieddine, CEO MENA at BDSwiss.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 1%, snapping its previous session losses, with Talaat Mostafa Group (TMGH.CA) surging 5% and Alexandria Container and Cargo Handling (ALCN.CA) rising 4.3%.
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