By Ateeq Shariff
April 19 (Reuters) - Most stock markets in the Gulf
ended lower on Wednesday in thin trade ahead of Eid al-Fitr
holidays and weighed by concerns around interest rate hikes,
with the Dubai index leading the losses.
The U.S. Federal Reserve is likely to have one more interest
rate rise in store, Atlanta Fed President Raphael Bostic said on
Tuesday, as the central bank continues to battle inflation.
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, exposing the region to a direct impact from
monetary tightening in the world's largest economy.
Dubai's main share index declined 1.2%, dragged
down by a 5.2% slide in Dubai Electricity and Water Authority as the stock traded ex-dividend.
In Abu Dhabi, the index ended flat.
Many investors prefer to cash in holdings ahead of the Eid
holiday, which lasts for at least three days in most Gulf
countries.
The Qatari index fell 0.1%, declining for a sixth
consecutive session, with Qatar Islamic Bank losing
2.3%.
The Qatari bourse maintained its downtrend with
uncertainties around the developments in natural gas markets
affecting confidence, said Ahmed Negm, head of market research
MENA at XS.com.
"Investors were also concerned about the global economic
developments and the resilient inflation levels in Europe.
Tighter monetary policies could affect demand for energy
products and the local economy."
Outside the Gulf, Egypt's blue chip index finished
0.1% lower, as profit-taking continues.
According to Negm, international investors continue to drive
selling pressures with these investors in particular taking a
more cautious approach following global developments and local
risks.
** Saudi was close for Eid
ABU DHABI was flat at 9,634
DUBAI down 1.2% to 3,471
QATAR eased 0.1% to 9,948
EGYPT down 0.1% to 17,516
BAHRAIN added 0.1% to 1,885
OMAN lost 0.1% to 4,743
KUWAIT fell 0.1% to 7,896
(Reporting by Ateeq Shariff in Bengaluru; Editing by Andrea
Ricci)
