Investors are worried that further potential interest rate hikes by inflation-fighting central banks could slow economic growth and dent energy demand in the United States, Britain and the European Union. 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 monetary tightening in the world's largest economy. In Abu Dhabi, the index rose 0.3%, with Fadi Reyad, Chief Market Analyst at CAPEX.com MENA, noting a positive trend was maintained as oil prices remained relatively stable.
"The market was led by rebounds in some of its largest
stocks and could continue to see a positive performance with
investors' sentiment moving to the bright side after the end of
Ramadan," he said.
Dubai's main share index fell 0.5%, weighed down by
a 2.5% drop in blue-chip developer Emaar Properties .
The Qatari benchmark , which traded after a three
session break, rose 1.4%.
Outside the Gulf, Egypt's blue-chip index fell
0.4%, with top lender Commercial International Bank down more than 2%.
According to Reyad, the Egyptian bourse saw a more pronounced
decline after failing to break above this year's high.
"The market could come under pressure as international
investors could accelerate their selling trend if global
conditions continue to deteriorate, in particular, if concerns
around U.S. banks' health increase."
SAUDI ARABIA rose 0.4% to 11,307
ABU DHABI up 0.3% to 9,676
DUBAI down 0.5% to 3,490
QATAR gained 1.4% to 10,073
EGYPT lost 0.4% to 17,452
BAHRAIN was up 0.4% to 1,895
OMAN eased 0.5% to 4,720
KUWAIT added 0.1% to 7,941
(Reporting by Ateeq Shariff in Bengaluru; Editing by Kirsten Donovan)
