Most major stock markets in the Gulf fell on Monday on concerns that inflation-busting interest-rate hikes in the United States and Europe will weaken the global economy.
U.S. Federal Reserve Chair Jerome Powell headlines a host of policymakers at a symposium in Jackson Hole, Wyoming later in the week, with expectations growing of further rate hikes rather than a pivot to a more dovish policy.
A Reuters poll of economists forecast the Fed will raise rates by 50 basis points in September, with the risks skewed towards a higher peak.
The Qatari benchmark index dropped 1.2% with most of its stocks in negative territory including Qatar Islamic Bank, which was down 1.4%.
Dubai’s main share index finished 0.3% lower, hit by a 1.2% fall in blue-chip developer Emaar Properties.
Emaar Properties said on Saturday it is selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF).
Emaar said in a bourse filing its board has in principle approved the sale, which values Namshi at $335.2 million, as a divestment to a related party.
Major Gulf markets dip on oil weakness, inflation worries
In Abu Dhabi, the index fell 0.4%, with telecoms firm e&, formerly known as Emirates Telecommunications Group, dropping 1%.
Saudi Arabia’s benchmark index reversed early losses to edge 0.1% higher, helped by a 0.9% rise in Al Rajhi Bank.
However, the index’s gains were limited by a 1.2% fall in Saudi Aramco as the oil giant went ex-dividend.
Outside the Gulf, Egypt’s blue-chip index declined 0.9%, with top lender Commercial International Bank retreating 2.1%.
SAUDI ARABIA firmed 0.1% to 12,560
ABU DHABI fell 0.4% to 10,041
DUBAI down 0.3% to 3,408
QATAR dropped 1.2% to 13,801
EGYPT lost 0.9% to 10,246
BAHRAIN was up 0.1% to 1,900
OMAN gained 0.3% to 4,617
KUWAIT added 0.5% to 8,659
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