By Mohd Edrees
Feb 7 (Reuters) - Gulf stock markets closed mixed on
Tuesday, with Qatar's bourse declining the most amid caution
ahead of a U.S. Federal Reserve policy meeting.
Financial markets expect the Fed will need to lift its
benchmark rate above 5% and keep it there to squeeze too-high
inflation out of an economy where the labor market remains
strong even after nearly a year of the most aggressive round of
Fed rate hikes in 40 years.
Investors were awaiting a speech by Fed Chair Jerome Powell
at the Economic Club of Washington later on Tuesday.
Most Gulf currencies are pegged to the U.S. dollar, while
Saudi Arabia, the United Arab Emirates and Qatar usually mirror
U.S. monetary policy changes.
The Qatari stock market was in the red as natural gas prices
maintained their strong downward trend. However, the market
could find some support from strong earnings in the financial
sector, said Farah Mourad, Senior Market Analyst of XTB MENA.
Saudi Arabia's benchmark index fell for a seventh
session, slipping 0.8%, weighed down by pressure on heavyweight
financial and healthcare sector stocks.
In Abu Dhabi, the benchmark index was marginally
higher, helped by a 2% jump in real estate developer Aldar
Properties after the firm launched Manarat Living, a
boutique residential development.
Dubai's benchmark index edged up 0.1%, rallying for
a fifth straight session as state-run utility firm Dubai
Electricity and Water Authority and toll operator
Salik Company added 0.8% each.
Outside the Gulf, Egypt's blue-chip index advanced
1.9%, extending gains to a second session, as the index was
boosted by a 3.1% gain in Commercial International Bank Egypt According to Farah Mourad, the Egyptian stock market was
boosted by optimism ahead of a large IPO programme to be
announced by the Egyptian government.
Egypt's government aims to announce a detailed plan to offer
stakes in at least 20 state companies over the coming year,
Prime Minister Moustafa Madbouly said after a cabinet meeting
last week.
SAUDI ARABIA down 0.8% to 10,470
ABU DHABI flat at 9,919
DUBAI up 0.1% at 3,405
QATAR lost 1.3% to 10,572
EGYPT up 1.9% to 16,900
BAHRAIN was flat at 1,935
OMAN up 0.1% to 4,758
KUWAIT flat at 8,238
(Reporting by Mohd Edrees in Bengaluru)
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