By Mohd Edrees
March 10 (Reuters) - Stock markets in United Arab
Emirates closed lower for a fourth straight session on Friday,
mirroring losses in crude prices on worries that a tighter
monetary policy will affect fuel demand.
U.S. Federal Reserve Chair Jerome Powell has warned of
higher and potentially faster rate hikes, saying the Fed was
wrong in initially thinking inflation was "transitory".
Oil prices — a key contributor to Gulf economies — extended
losses to the fourth session, with Brent dipping 24
cents, or 0.29%, to $81.38 a barrel by 1102 GMT. Most Gulf Cooperation Council (GCC) countries, including
UAE, have their currencies pegged to the dollar, thus making
them directly exposed to any monetary changes in the world's
largest economy.
Dubai's main market index dropped 0.7%, dragged by
heavy losses in heavyweight real estate and financial sectors
stocks.
Dubai Commercial Bank , the biggest loser in the
index, plunged 11.8% as the stock was trading ex-dividend.
Business park operator Tecom Group slipped 2.9%.
Separately, UAE-based exchange house Al Ansari Financial
Services said on Thursday it plans to float 10% of the company
on the Dubai Financial Market through an initial public offering
(IPO).
In Abu Dhabi, the index fell 0.3%, with
investment firm Multiply Group dropping 2.1%.
Conglomerate Alpha Dhabi Holding lost 0.4%.
The Abu Dhabi stock market could continue to see some price
corrections amid declining crude prices and deteriorating global
sentiments, said Farah Mourad, senior market analyst at XTB
MENA.
ABU DHABI up 0.3% to 9,828
DUBAI down 0.7% to 3,386
(Reporting by Mohd Edrees in Bengaluru; Editing by Shilpi
Majumdar)
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