Major stock markets in the Gulf were mixed in early trade on Tuesday as investors await this week’s interest rate decision by the US Federal Reserve.
Saudi Arabia’s benchmark index added 0.2%, with Retal Urban Development Co losing 0.8% and oil giant Saudi Aramco declining 0.7%.
The Fed is predicted to raise rates by another 25 basis points Wednesday.
The US central bank has raised its policy rate by 475 basis points since March last year from the near-zero level to the current 4.75%-5.00% range.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the US dollar and follow the Fed’s policy moves closely, exposing the region to a direct impact from monetary tightening in the world’s largest economy.
However, Saudi National Bank (SNB) added 0.5%, after reporting a rise in first-quarter net profit.
In Abu Dhabi, the index dropped 0.3%, on course to extend losses from the previous session.
Most Gulf markets fall as Fed seen hiking rates
Oil prices - a key catalyst for the Gulf’s financial markets - fell in Asian trade, extending losses seen in the previous session, as weak economic data from China and expectations of a US interest rate increase weigh on the market.
Dubai’s main share index gained 0.5%, with utility firm Dubai Electricity and Water Authority advancing 1.6%.
The Qatari benchmark firmed 0.1%.
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