Gulf markets, which are highly sensitive to changes in oil prices, were mostly trading on the back foot after tepid growth data from China and on worries that higher interest rates in the United States could slow global economic growth, squeezing oil demand. In Abu Dhabi, the benchmark index slipped 0.7%, its third straight day of decline, dragged down by a 2.9% slide in top lender First Abu Dhabi Bank and 0.6% retreat in conglomerate International Holding Company . Dubai's main share index also extended losses for a third consecutive session to open slightly lower at 0.1%, led by a 0.5% retreat in blue-chip developer Emaar Properties and a 2.1% fall in telecoms operator Emirates Integrated Telecommunications . Saudi Arabia's benchmark stock index gained 0.5%. The index was boosted by gains in finiancial and real estate stocks, with Al Rajhi Bank increasing 1.1% and real estate developer Retal Urban Development advancing 0.5%. State oil giant Saudi Aramco , which will report its annual earnings on Sunday, was down 0.3%. Among other stocks, Thimar Development Holding surged nearly 10% after Riyadh's Commercial Court approved to amend the company's financial reorganization proposal. Meanwhile, Saudi Arabia's economy grew 5.5% year-on-year in the fourth quarter of 2022, slightly more than the 5.4% estimate, as non-oil activity boosted overall growth. The Qatari benchmark index also rose 0.3%, its seventh positive session in a row, helped by banking stocks including Qatar Islamic Bank and Commercial Bank , which gained 2% and 1%, respectively. (Reporting by Shamsuddin Mohd in Bengaluru; Editing by Sonia Cheema)
March 9 (Reuters) - Equity markets in the Gulf opened
mixed on Thursday after the U.S. Federal Reserve Chair's hawkish
stance on higher and faster interest rates dampened investor
sentiment.
Aggressive rate hikes may pose challenges for the Gulf
economy as most Gulf Cooperation Council (GCC) countries have
their currencies pegged to the dollar and generally follow the
Fed's policy moves, exposing them to any monetary tightening.
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