Most Gulf shares drop in early trade, #Saudi gains | Reuters

Most Gulf shares drop in early trade, Saudi gains | Reuters

Most stock markets in the Gulf were down in early trade on Wednesday as worries over higher interest rates by the U.S. Federal Reserve continued to dent investor sentiment.

The Fed last week held its policy rate steady in a range of 5.25%-5.50%, but most policymakers signaled they believe one more interest-rate hike by the end of the year will likely be appropriate.

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.

Dubai's benchmark stock index (.DFMGI) was down 0.5% in early trade with Emaar Properties (EMAR.DU) dropping 1% and Emirates Central Cooling Systems (EMPOWER.DU) sliding 1.1%.

The emirate's largest lender Emirates NBD <ENBD.DU slipped 0.6%.

In Abu Dhabi, the benchmark stock index (.FTFADGI) fell 0.2%, weighed down by a 0.2% loss in conglomerate International Holding Company (IHC.AD) and 1.5% drop in Aldar Properties (ALDAR.AD).

The UAE's largest lender First Abu Dhabi Bank (FAB.AD) and Abu Dhabi Commercial Bank (ADCB.AD) shed 0.4% and 0.8%, respectively.

In Qatar, the benchmark (.QSI) edged down 0.2% with Qatar Navigation (QNNC.QA) falling 2.6% and Ooredoo QPSC (ORDS.QA) dropping 1%.

Among the losers, Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA) slipped 0.3% and 0.5%, respectively.

Saudi Arabia's benchmark stock index (.TASI) was up 0.3%, helped by gains in most sectors with Sahara International Petrochemical Co (2310.SE) surging 2.5% and Al Rajhi Bank (1120.SE) gaining 0.6%.