By Ateeq Shariff
May 3 (Reuters) - Most stock markets in the Gulf ended
lower on Wednesday, ahead of an expected Federal Reserve
interest rate hike later in the day, with the Saudi index
registering its biggest intraday fall in nearly two months.
In their efforts to tame inflation, the U.S. Federal Reserve
is expected to hike rates by an additional 25 basis points on
Wednesday, while the European Central Bank is also expected to
raise rates at its regular policy meeting on Thursday.
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.
Saudi Arabia's benchmark index declined 1.3% with Al
Rajhi Bank losing 1.5%, while Alinma Bank retreated 5.7% as the lender missed market expectations for the
first quarter.
In Abu Dhabi, the index dropped 0.3%, with the
country's biggest lender First Abu Dhabi Bank losing
0.9%.
Oil prices - a catalyst for the Gulf's financial markets -
extended losses after plunging 5% in the previous session, as
investors fretted about the health of the U.S. economy ahead of
the expected Federal Reserve rate hike.
Dubai's main share index edged 0.1% higher, helped
by a 3.7% jump in Tecom Group after the business park
operator reported a 34% rise in first-quarter net profit.
The Qatari benchmark advanced 1.5%, extending gains
for a sixth session, with telecoms company Ooredoo climbing more than 5%.
Outside the Gulf, Egypt's blue-chip index finished
flat.
Egypt's non-oil private sector activity shrank for the 29th
consecutive month in April as import and currency restrictions
and surging prices caused business confidence to hit an all-time
low, a survey showed on Wednesday.
The S&P Global Egypt Purchasing Managers' Index (PMI)
improved to 47.3 in April from 46.7 in March, but remained below
the 50.0 threshold that marks growth in activity.
SAUDI ARABIA fell 1.3% to 11,73
ABU DHABI lost 0.3% to 9,645
DUBAI added 0.1% to 3,578
QATAR gained 1.5% to 10,485
EGYPT was flat at 17,295
BAHRAIN was down 0.2% to 1,902
OMAN rose 0.1% to 4,728
KUWAIT declined 0.9% to 7,723
(Reporting by Ateeq Shariff in Bengaluru; editing by Barbara
Lewis)
