[ad_1]
May 1 (Reuters) – Most major stock markets in the Gulf region fell in early trade on Monday, weighed down by expectations the Federal Reserve would raise interest rates, although the Qatari index bucked the trend.
The Fed is expected to raise rates another 25 basis points this week. The Fed has raised policy rates by 475 basis points since March last year from near zero to the current range of 4.75%-5.00%.
Most GCC countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the dollar and closely monitor the Fed’s policy moves, exposing the region to the immediate impact of monetary tightening in the world’s largest economy.
Dubai main stock index (.DFMGI) Down 0.1%, hit by a 1.1% drop in Emirates NBD Bank (ENBD.DU) Utilities DEWA down 0.8% (DEWAA.DU).
In Abu Dhabi, the index (.FTFADGI) Shares with lender First Abu Dhabi Bank down 0.6% (FAB.AD) (FAB) fell 1.4%, on track to snap a five-day winning streak.
FAB, the UAE’s largest bank by assets, reported a 23% drop in first-quarter net profit on Thursday, but said its loans and deposits rose on the back of momentum in the business and business environment.
Saudi Arabia’s Benchmark Index (.one) It was flat in choppy trade.
Oil Prices – Catalyst for Gulf Financial Markets –fall Nervousness over the economic fallout from Fed rate hikes and weak Chinese manufacturing data outweighed support from OPEC+ production cuts that took effect this month.
In Qatar, the index (.QSI) Telecommunications company Ooredoo bucks the trend and rises 0.5% (ORDS.QA) An increase of more than 5%.
Reporting by Ateeq Shariff in Bengaluru; Editing by Barbara Lewis
Our standards: Thomson Reuters Trust Principles.
[ad_2]
Source link