By Ateeq Shariff
Feb 19 (Reuters) - Saudi Arabia's stock market closed
lower on Sunday after U.S. economic data stoked fears the
Federal Reserve will act more aggressively to curb inflation.
Most Gulf Cooperation Council countries, including Qatar,
Saudi Arabia and the United Arab Emirates have their currencies
pegged to the U.S. dollar and follow the Fed's policy moves
closely, exposing the region to a direct impact from monetary
tightening in the world's largest economy.
The benchmark index in Saudi Arabia dropped 0.5%,
dragged down by a 2.1% slide in Retal Urban Development Co and a 0.9% decrease Al Rajhi Bank .
On Friday, oil - a catalyst for the Gulf's financial markets
- settled down $2 a barrel, ending the week markedly lower, as
traders worried future U.S. interest rate hikes could cut energy
demand and evidence mounted fuel supplies are ample.
Outside the Gulf, Egypt's blue-chip index declined 0.9%, with most of the index's stocks were in negative
territory, including Fawry For Banking Technology and Electronic
Payment , which was down 3.1%.
Egyptian International Pharmaceutical Industries Co , which is not part of the index, shed more than 5%
after shareholders decided to delay a capital increase through a
rights issue.
In Qatar, the index bucked the trend to finish 0.7%
higher, led by a 3.4% rise in the Gulf's biggest lender Qatar
National Bank .
** Markets in Kuwait and Oman were closed for a holiday
SAUDI ARABIA fell 0.1% to 9,473
QATAR gained 0.7% to 10,716
EGYPT lost 0.9% to 17,327
BAHRAIN added 0.1% to 1,937
(Reporting by Ateeq Shariff in Bengaluru; editing by Barbara
Lewis)
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