Feb 20 (Reuters) - Most major stock markets in the Gulf
fell in early trade on Monday, amid concerns that the U.S.
Federal Reserve would continue with aggressive rate hikes to
tame inflation.
On Friday, two Fed policymakers signalled that interest
rates would need to go higher after a run of strong economic
news, despite the central bank raising rates by 450 basis points
in 11 months.
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.
Saudi Arabia's benchmark index dropped 0.3%, on
course to extend losses for a second session, hit by a 1.4% fall
in Riyad Bank .
However, the index's losses were limited by a 6.1% jump in
Etihad Etisalat Co , which reported a sharp rise in
annual profits on Monday.
The telecom firm also announced cash dividend of 1.15 riyals
($0.3066) per share for the year 2022.
In Qatar, the index lost 0.2%, with the Gulf's
biggest lender Qatar National Bank declining 1.4%.
On the other hand, Baladna , the country's largest
dairy and beverage company, advanced 4.3% after it signed a
manufacturing agreement with cheese and snack giant The Bel
Group.
Dubai's main share index eased 0.2%, weighed down
by a 0.9% drop in blue-chip developer Emaar Properties .
The Abu Dhabi index , however, bucked the trend to
edge 0.1% higher.
Oil prices - a key catalyst for the Gulf's financial markets
- rose amid optimism over China's demand recovery, concerns that
underinvestment will crimp future oil supply and as major
producers keep output limits in place. ($1 = 3.7503 riyals)
(Reporting by Ateeq Shariff in Bengaluru; Editing by Varun H K)
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