Stock markets in United Arab Emirates closed lower for a fourth straight session on Friday, mirroring losses in crude prices on worries that a tighter monetary policy will affect fuel demand.
U.S. Federal Reserve Chair Jerome Powell has warned of higher and potentially faster rate hikes, saying the Fed was wrong in initially thinking inflation was “transitory”.
Oil prices — a key contributor to Gulf economies — extended losses to the fourth session, with Brent dipping 24 cents, or 0.29%, to $81.38 a barrel by 1102 GMT.
Most Gulf Cooperation Council (GCC) countries, including UAE, have their currencies pegged to the dollar, thus making them directly exposed to any monetary changes in the world’s largest economy.
Dubai’s main market index dropped 0.7%, dragged by heavy losses in heavyweight real estate and financial sectors stocks.
Gulf stocks subdued on hawkish Fed chief Powell; Saudi gains
Dubai Commercial Bank, the biggest loser in the index, plunged 11.8% as the stock was trading ex-dividend. Business park operator Tecom Group slipped 2.9%.
Separately, UAE-based exchange house Al Ansari Financial Services said on Thursday it plans to float 10% of the company on the Dubai Financial Market through an initial public offering (IPO).
In Abu Dhabi, the index fell 0.3%, with investment firm Multiply Group dropping 2.1%. Conglomerate Alpha Dhabi Holding lost 0.4%.
The Abu Dhabi stock market could continue to see some price corrections amid declining crude prices and deteriorating global sentiments, said Farah Mourad, senior market analyst at XTB MENA.
================================= ABU DHABI up 0.3% to 9,828 DUBAI down 0.7% to 3,386 =================================
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