Most Gulf markets fall on lower oil prices; Abu Dhabi up

Jan 31 (Reuters) – Most Gulf stocks ended lower on Tuesday as lower oil prices and expectations of a rate hike by the Federal Reserve dampened investor sentiment, while Abu Dhabi bucked the trend.

Oil prices – key catalyst for Gulf financial markets – down more than 1% Brent crude futures for March were down 1.25% at $83.97 a barrel by 1414 GMT on Tuesday.

investor expected The Fed is due to raise interest rates by 25 basis points on Wednesday and any deviation from that script would be a real shock.

Most Gulf currencies are pegged to the dollar, with Saudi Arabia, the United Arab Emirates and Qatar typically mirroring changes in U.S. monetary policy.

benchmark index (.one) Shares in Saudi Arabia fell 0.2 percent, extending losses into a second session.The index was dragged down by a 1.8% drop in the Saudi Basic Industries Index (2010.SE) Luxury real estate developer Retal Urban Development fell 0.2 percent (4322.SE).

Meanwhile, Saudi Arabia, the Gulf’s second-largest economy, grew by 5.4% in the fourth quarter of 2022, down from an annual growth rate of 8.8% in the previous quarter, according to preliminary government estimates.

In Abu Dhabi, the index (.FTFADGI) It rose 0.1 percent, helped by Abu Dhabi Islamic Bank’s 5.7 percent gain, its biggest intraday gain since July.

Abu Dhabi’s largest sharia-compliant bank reported a surge in quarterly net profit, supported by broad-based revenue momentum across all its operating businesses.

Dubai’s benchmark index (.DFMGI) Financials and real estate heavyweights in Dubai edge down slightly, dragged down by losses in Dubai Islamic Bank (DISB.DU) Down 3% and Emaar Properties (EMAR. YOU) down 0.7%.

Qatar Stock Index (.QSI) It fell 1.7 percent, with most of its constituents in the red.

“The warm winter is affecting energy demand in Europe and the US and could put pressure on the Qatari market,” said Farah Mourad, senior market analyst at XTB MENA.

Qatar National Bank (QNBK.QA) Slip continues, down 3%, Masraf Al Rayan (MARK.QA) It fell for a third straight session, falling 5.5 percent on weak earnings.

The bank reported on Sunday that its full-year net profit fell more than 22%.

Beyond the Gulf, Egypt’s blue-chip index (.EGX30) It closed down 3.4 percent, extending losses into a second session, with nearly all of its constituent stocks down.

commercial international bank (COMI.CA) and e-finance (EFIH.CA) They fell 5.7% and 6.1%, respectively.

Reporting by Md Manzer Hussain; Editing by Christina Finch

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