Saudi Arabia’s stock market was the worst performer among Gulf bourses that were mixed on Monday amid worries of rate hikes by the U.S. Federal Reserve.
Two Fed policymakers on Friday signaled that interest rates would need to go higher after a flurry of U.S. data suggested the world’s largest economy is holding up far better than expected.
Most Gulf Cooperation Council countries, including Qatar, Saudi Arabia and the United Arab Emirates have their currencies pegged to the U.S. dollar and follow the Fed’s policy moves closely.
The benchmark index in Saudi Arabia dropped 1.2%, dragged down by losses in most sectors.
Shares of the world’s largest Islamic bank by assets, Al Rajhi Bank, fell 1.3% and Riyad Bank was down 2.1%.
However, shares of Etihad Etisalat Co jumped 5.7%, its best intraday gain since June, after the telecom operator reported a 54.6% increase in full-year net profit.
Dubai’s benchmark index inched up 0.1%, lifted by gains in banking, real estate and industry sectors.
Lender Emirates NBD rose 1.5% and shares of toll-road operator Salik Co increased 0.7%.
In Abu Dhabi, the index fell marginally, dragged down by a 1.6% loss in Abu Dhabi National Oil Company for Distribution and a 1.3% decline in Aldar Properties.
The Qatari stock index ended flat.
Among gainers, Baladna, the country’s largest dairy and beverage company, rose 2.7% after it signed a manufacturing agreement with cheese and snack giant The Bel Group.
Outside the Gulf, Egypt’s blue-chip index declined 3%, extending losses for the third session, with almost all its constituent stocks in the red.
Commercial International Bank and electronic payments company Fawry dropped 3.6% and 4.8%, respectively.
The Egyptian stock market saw more price corrections after nearing its peak and trading volumes declined, Daniel Takieddine, CEO MENA at BDSwiss, said.
“Lower forecasts for the country’s economic growth could also impact sentiment.”
====================================== SAUDI ARABIA fell 1.2% to 10,371 QATAR ended flat 10,717 EGYPT dropped 3% to 16,814 BAHRAIN ended flat at 1,938 OMAN added 0.2% to 4,664 KUWAIT lost 0.1% at 8,224 ABU DHABI fell 0.01% to 9,976 DUBAI added 0.1 at 3,462 ======================================
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