DUBAI: Most Gulf stock markets were subdued on Monday as investors turned cautious ahead of key US economic data that could shape the interest rate outlook.
The upcoming employment, inflation and other indicators are especially critical after a 43-day US federal government shutdown delayed key reports, leaving investors and the Federal Reserve with little certainty.
The Fed last week cut rates by 25 basis points for a third straight meeting but signalled further reductions are unlikely in the near term as it waits for clearer data.
US monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
The Qatari benchmark index fell 0.9 percent, with all constituents in negative territory. Qatar Islamic Bank slipped 2.4 percent and Qatar Electricity and Water Co dropped 1.8 percent.
Dubai’s benchmark stock index edged 0.1 percent lower, weighed down by a 9.7 percent slide in Gulf Navigation and a 0.7 percent decline in Emirates NBD, the emirate’s largest lender. Ajman Bank gained 3.1 percent after the Ajman government said on Friday it had raised its stake in the bank to 33.1 percent from 31.1 percent.
Saudi Arabia’s benchmark stock index ended flat, with Saudi Basic Industries Corp down 1.3 percent and Riyad Bank off 1.1 percent. Fawaz Abdulaziz Al Hokair & Co
rose 1.6 percent after the retailer signed a 1.58 billion riyal (USD421 million) facilities agreement on Sunday.
The Abu Dhabi benchmark index was little changed as gains in technology, real estate, healthcare and energy offset losses elsewhere.
Abu Dhabi Commercial Bank added 1.1 percent, while Invictus Investment jumped 10.2 percent, its biggest intraday gain in more than three years, after the diversified trading company said on Friday that International Holding Company
had increased its stake to about 40 percent in a block trade valued at around 420 million dirhams (USD114.36 million).