DUBAI: Most Gulf stocks fell on Wednesday in tandem with weaker global share markets, as investors wait for signals on the US 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. US monetary policy strongly influences Gulf markets, where most currencies are pegged to the dollar.
The Qatari benchmark index 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, down 2.9%, and Qatar National Bank, 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 dropped 0.5% after four sessions of gains, with most sectors lower. Blue-chip developer Emaar Properties lost 1%, and Emirates NBD
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 eased 0.1%, weighed down by a 0.9% drop in Abu Dhabi Islamic Bank and a 2% fall in ADNOC Drilling.
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