Major Gulf bourses fall on Fed chair’s hawkish tone

28 Aug, 2023

Most stock markets in the Gulf ended lower on Monday as a slightly hawkish outlook from U.S. Federal Reserve chair Jerome Powell weighed on investor sentiment.

Powell on Friday reiterated the central bank would make all efforts to tackle inflation.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.

In Abu Dhabi, the index fell for a second consecutive session, ending 0.2% lower, weighed down by a 1.3% drop in Abu Dhabi Islamic Bank and a 0.7% decline in the UAE’s largest lender, First Abu Dhabi Bank.

The Qatari index fell 0.5%, snapping its winning streak from the two previous sessions, with most sectors in the red.

Most Gulf markets gain, Egypt outperforms

Qatar National Bank, the region’s largest lender, dropped 0.9% and Commercial Bank lost 1.3%.

Saudi Arabia’s benchmark index was down 0.1%, also after rising in the previous two sessions. The index was dragged down by a 2.2% decline in Dr Sulaiman Al-Habib Medical Services and a 0.7% fall in oil giant Saudi Aramco.

The world’s largest Islamic bank by assets, Al Rajhi Bank, and Banque Saudi Fransi slipped 0.3% and 0.9% respectively.

Dubai’s benchmark index ended flat with industry and utilities seeing broad losses but financial and communication sectors recording some gains.

Dubai road-toll operator Salik lost 1.2% and National Central Cooling dropped 2.1%.

The emirate’s largest lender Emirates NBD added 1.2%.

Outside the Gulf, Egypt’s blue-chip index rose 0.4%, adding to gains in the previous two sessions, with Commercial International Bank and Palm Hills rising 1.4% and 4.3% respectively.

======================================= SAUDI ARABIA     fell 0.1% to 11,464 KUWAIT           lost 0.4% to 7,726 QATAR            fell 0.5% to 10,336 EGYPT            added 0.4% to 18,585 BAHRAIN          ended flat at 1,953 OMAN             fell 0.1% to 4,769 ABU DHABI        fell 0.2% to 9,749 DUBAI            ended flat at 4,100=======================================
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