Most stock markets in the Gulf ended mixed on Thursday amid concerns around recession in the United States, with the Saudi index snapping six sessions of gains.

Saudi Arabia’s benchmark index dropped 0.3% with Al Rajhi Bank losing 1.6%. The bank reported profits that were lower than last quarter although higher than the same period a year ago.

U.S. economic growth slowed more than expected in the first quarter, despite an increase in consumer spending, and activity is set to moderate further as the effects of higher interest rates spread.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed’s policy moves closely, exposing the region to monetary tightening in the world’s largest economy.

In Abu Dhabi, the index finished 0.8% higher.

The Abu Dhabi bourse was driven by gains in the banking sector as positive earnings improved sentiment, hinting at a solid local economy, said Ahmed Negm, Head of Market Research MENA at XS.com.

Major Gulf bourses mixed in early trade on economic worries

“The surge has countered the effects of declining oil prices. The main index could find some resistance if crude prices continue to retreat.”

Oil prices - a key catalyst for the Gulf’s financial markets - steadied after the previous day’s price drop reversed the supportive impact of a surprise cut to OPEC production targets this month.

Outside the Gulf, Egypt’s blue-chip index advanced 2%, on broad-based gains with top lender Commercial International Bank Egypt putting on 1.9%.

According to Negm, the Egyptian stock market rebounded with local investors boosting trading volumes. The banking sector could be a driver in gains for the broader market.

“Banks could see more accommodating conditions as the country might need to continue raising interest rates to fight inflation. At the same time, retreating fears over U.S. banking woes could improve investors’ appetite for risk.”

====================================== SAUDI ARABIA    fell 0.3% to 11,271 ABU DHABI       rose 0.8% to 9,751 DUBAI           gained 0.8% to 3,516 QATAR           added 0.7% to 10,145 EGYPT           leapt 2% to 17,797 BAHRAIN         eased 0.1% to 1,895 OMAN            was up 0.3% to 4,735 KUWAIT          was flat at 7,940======================================