Thursday 23 May 2024

Most Gulf bourses drop on hawkish Fed minutes | Reuters

Most Gulf bourses drop on hawkish Fed minutes | Reuters

Most stock markets in the Gulf slipped in early trading on Thursday on more hawkish-than-expected minutes of the U.S. Federal Reserve's latest policy meeting, while muted oil prices also weighed on sentiment.

Fed officials at their April 30-May 1 session indicated they still had faith that price pressures would ease, if only slowly, but the meeting minutes also reflected a discussion of possible tightening.

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

The Qatari benchmark index (.QSI), opens new tab was down 0.7%, pressured by a 1.1% drop in Industries Qatar (IQCD.QA), opens new tab and a 1.4% loss in Qatar Navigation (QNNC.QA), opens new tab.

Dubai's benchmark stock index (.DFMGI), opens new tab slipped 0.6%, weighed down by losses in almost all sectors. The blue-chip developer Emaar Properties (EMAR.DU), opens new tab fell 1.2% and Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, shed 0.6%.

In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab fell 0.6% with Aldar Properties (ALDAR.AD), opens new tab sliding 1% and conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab declining 4.7%.

ADNOC Drilling (ADNOCDRILL.AD), opens new tab climbed 3.2%. Parent energy major ADNOC said on Thursday it raised $935 million from an additional 5.5% sale of shares in ADNOC Drilling to institutional investors.

Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 0.5%, with Banque Saudi Fransi (1050.SE), opens new tab dropping 3.7% and Saudi Arabian Mining (1211.SE), opens new tab falling 1.4%. Riyadh Cables (4142.SE), opens new tab and Makkah Construction (4100.SE), opens new tab, however, advanced 6.3% and 2.5%, respectively.

Oil prices, a catalyst for the Gulf's financial markets, eased for a fourth straight session, with Brent down 0.2% at $81.76 a barrel by 0805 GMT.

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