May 1 (Reuters) - Most major stock markets in the Gulf
fell in early trade on Monday, dragged lower by expectations the
Federal Reserve will increase interest rates, although the
Qatari index bucked the trend.
The Fed is predicted to raise rates by another 25 basis
points this week. The U.S. central bank has raised its policy
rate by 475 basis points since March last year from the
near-zero level to the current 4.75%-5.00% range.
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 fell 0.1%, hit by a 1.1%
fall in Emirates NBD Bank and a 0.8% decrease in
utility firm Dubai Electricity and Water Authority .
In Abu Dhabi, the index declined 0.6%, with
lender First Abu Dhabi Bank (FAB) retreating 1.4%, on
course to snap a five-day winning streak.
FAB, the UAE's biggest lender by assets, on Thursday
reported a 23% fall in first-quarter net profit, but said its
loans and deposits grew, supported by momentum in the business
and commercial environment.
Saudi Arabia's benchmark index was flat in a choppy
trade.
Oil prices - a catalyst for the Gulf's financial markets
-fell as nervousness over the economic impact of any U.S.
Federal Reserve interest rate rise and weaker Chinese
manufacturing data outweighed the support of OPEC+ supply cuts
taking effect this month.
In Qatar, the index bucked the trend to trade 0.5%
higher, with telecoms firm Ooredoo up more than 5%.
(Reporting by Ateeq Shariff in Bengaluru; editing by Barbara
Lewis)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.