Most Gulf stocks fell on Wednesday in tandem with weaker global share markets, as investors wait for signals on the U.S. interest rate outlook from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium later this week.
When Powell gives his speech on Friday traders will be watching closely for any pushback against expectations for a rate cut next month. U.S. monetary policy strongly influences Gulf markets, where most currencies are pegged to the dollar.
The Qatari benchmark index (.QSI), opens new tab fell for a fourth straight session, closing down 1.6% as profit-taking persisted after last week's earnings-fuelled rally. All constituents declined, including Qatar Islamic Bank (QISB.QA), opens new tab, down 2.9%, and Qatar National Bank (QNBK.QA), opens new tab, off 1.5%.
"The market in Qatar is awaiting the FTSE Global Equity Index quarterly review this week, which could influence trading activity," said Osama Al Saifi, managing director for MENA at Traze.com.
FTSE Global Equity Index is considered a key benchmark among global institutional investors.
Dubai's benchmark stock index (.DFMGI), opens new tab dropped 0.5% after four sessions of gains, with most sectors lower. Blue-chip developer Emaar Properties (EMAR.DU), opens new tab lost 1%, and Emirates NBD (ENBD.DU), opens new tab fell 1.3%. The emirate's largest lender ENBD issued a 1 billion renminbi ($139 million) three-year Dim Sum bond at par to yield 2.4%, IFR reported.
"The index continues to linger near multi-year highs, with its next direction uncertain. A correction remains possible if the market fails to find new support," said Al Saifi.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab eased 0.1%, weighed down by a 0.9% drop in Abu Dhabi Islamic Bank (ADIB.AD), opens new tab and a 2% fall in ADNOC Drilling (ADNOCDRILL.AD), opens new tab.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was little changed, as gains in finance and consumer discretionary shares outweighed losses elsewhere. Al Rajhi Bank (1120.SE), opens new tab added 0.9% and Arab National Bank (1080.SE), opens new tab advanced 2.4% while Saudi Basic Industries (2010.SE), opens new tab and ACWA Power (2082.SE), opens new tab dropped 2.6% and 1.2% respectively.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab slid 1% with almost all of its constituents in red. Commercial International Bank (COMI.CA), opens new tab retreated 1.5% and Juhayna Food (JUFO.CA), opens new tab dropped 5.2%.
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