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Most Gulf stocks closed lower on Monday, tracking global peers, while Abu Dhabi bucked the trend, as looming rate hikes by major central banks, including the Federal Reserve, weighed on investor sentiment.
Investors expect the Fed 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, while Saudi Arabia, the United Arab Emirates and Qatar typically mirror changes in U.S. monetary policy.
Saudi Arabia’s benchmark index fell 0.3%, snapping a seven-session winning streak. The index was dragged down by losses in financials and materials stocks, with Al Rajhi Bank down 0.4 percent and Riyad Bank down 1.9 percent. Among other stocks, National Bank of Saudi Arabia and SABIC fell 2.% and 0.6%, respectively.
In Abu Dhabi, the index ended up 0.7% after falling more than 3% to a six-month low. The index was boosted by a 4.2 percent rise in integrated utility ADNEC and a 5.2 percent rise in telecoms provider Etisalat. While International Holdings recovered early losses to close flat, its subsidiaries Alpha Dhabi Holding and Multiply Group only partially recovered ground, closing down 2.9 percent and 4.2 percent, respectively, after slumping 10 percent.
Separately, IHC said on Monday it would invest AED1.4 billion ($381.17 million) in a follow-on public offering of Adani Enterprises in India. Dubai’s benchmark index fell 0.8 percent, led by losses in the industrial and heavyweight real estate sectors, with Emaar Properties down 2.1 percent and toll operator Salik down 3.1 percent.
Qatar’s stock index fell 0.3%, with most of its constituents in negative territory. Qatar National Bank, the largest lender in the Gulf region, fell 0.5 percent, while Masraf Al Rayan fell 5.1 percent on weak earnings. The lender posted a more than 22% drop in full-year net profit.
Outside the Gulf, Egypt’s blue-chip index fell 2.2%, snapping a 12-session winning streak. The index was dragged down by losses in nearly all of its constituents. Telecom Egypt fell 7.1 percent, while Talaat Mostafa and EFG Hermes fell 3.3 percent and 2.9 percent, respectively.
- Saudi Arabia fell 0.3% to 10,811
- Qatar fell 0.3% to 11,123
- Egypt fell 2.2% to 17,027
- Bahrain was flat 0.04% to 1,931
- Oman down 0.3% to 4,750
- Kuwait fell 0.7% to 8,084
- Abu Dhabi up 0.7% to 9,802
- Dubai fell 0.8% to 3,303
(Reporting by Md Manzer Hussain; Editing by Maju Samuel)
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