Most Gulf stock markets were subdued in early trade on Thursday amid falling oil prices and following U.S. Federal Reserve Chair Jerome Powell’s hawkish tone on rates.
Powell in his remarks to lawmakers in Washington on Wednesday said the outlook for two further 25-basis-point (bps) rate increases are “a pretty good guess” of where the central bank is heading if the economy continues in its current direction.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
In Qatar, the benchmark index slumped 1.1%, with most sectors trading in the red, with region’s largest lender Qatar National Bank dropping 2.1% and Masraf Al Rayan sliding 1.1%.
Dubai’s benchmark stock index eased 0.1%, with Emaar Properties falling 0.3% and National Central Cooling shedding 1%.
Saudi Arabia’s benchmark stock index slipped 0.1%, dragged down by losses in finance and energy sectors, with National Shipping Company dropping 2% and Jabal Omar falling 0.8%.
The world’s largest Islamic bank by assets, Al Rajhi Bank and oil company Saudi Aramco lost 0.4% and 0.3% respectively.
Elsewhere, shares of First Milling Co shot up as much as 30% to 78 riyals per share in its market debut from an offer price of 60 riyals per share.
Crude oil prices - a key catalyst for the Gulf’s financial markets - dipped on Thursday with Brent crude down 0.4% at $76.780 a barrel at 0800 GMT.
In Abu Dhabi, the benchmark stock index gained only marginally, helped by a 2.8% rise in Alpha Dhabi Holding and 0.9% gain in Q Holding.
But the United Arab Emirates largest lender First Abu Dhabi Bank lost 0.7%.