Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, leaving the region exposed to monetary tightening in the world's largest economy. Saudi Arabia's benchmark index gained 0.8% after two sessions of losses, with Al Rajhi Bank and oil giant Saudi Aramco both closing 0.8% higher. Oil prices - a key catalyst for the Gulf's financial markets - steadied. Clarity around oil demand and supply will come with monthly reports from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency due on Thursday and Friday, respectively. Dubai's main share index rose 1.5% to mark a new high for the year by some margin, partly buoyed by a 3.5% jump in blue-chip developer Emaar Properties . Analysts pointed to strong local fundamentals with Ahmed Negm, Head of Market Research MENA at XS.com, saying positive developments in local business activity could continue to support an optimistic view among investors. Abu Dhabi's index added 0.4%, while the Qatari benchmark fell 0.5%, weighed down by a 4.3% drop in Qatar Islamic Bank .
Outside the Gulf, Egypt's blue-chip index fell
1.6%, with most of its individual stocks in negative territory,
including Egypt Kuwait Holding , which was down 8.6%.
XS.com's Negm pointed to elevated inflation and downgraded
growth forecasts as factors behind the ongoing pressure on the
Egyptian market.
SAUDI ARABIA rose 0.8% to 10,935
ABU DHABI up 0.4% to 9,549
DUBAI gained 1.5% to 3,497
QATAR dropped 0.5% to 10,226
EGYPT down 1.6% to 16,741
BAHRAIN was flat at 1,881
OMAN ended flat at 4,767
KUWAIT added 1.5% to 7,764
(Reporting by Ateeq Shariff in Bengaluru; Editing by Kirsten Donovan)
