Banks push Gulf stock exchanges down as fears of monetary policy tightening increase

Gulf bourses fell yesterday, amid investor expectations that the Federal Reserve will take a tighter monetary policy to curb inflation.
Oil prices, the catalyst for growth in the region, are declining, given that the increase in interest rates in the United States and other countries, might lead to a slowdown in global economic growth and thus reduce the demand for oil. Bank stocks suffered the biggest losses in all markets, as raising interest rates might lead to a decline in lending to businesses and individuals.
According to “Archyde.com”, the main stock index in Dubai fell 0.9 percent, and the shares of financial and real estate companies with heavy losses led.
The Abu Dhabi index fell 0.2 percent, following five days of gains, ending the longest winning streak in a month.
The market received some support from Taqa, whose shares jumped 14.6 percent following the Multiplay Group acquired a 7.3 percent stake in it in a deal worth ten billion dirhams ($2.72 billion).
In Qatar, almost all stocks fell, which led to a 1.7 percent drop in the index. The Kuwait Stock Exchange closed down by 0.72 percent amid weak liquidity in circulation.
Shares of National Bank of Kuwait fell 0.77 percent, Kuwait Finance House “KFH” 0.45 percent and Gulf Bank 1.2 percent. Shares of Zain Mobile Communications also fell 1 percent. The Bahrain index fell 0.03 percent to 1,938 points. Muscat index fell 0.17 percent to 4,490 points.
In Cairo, the main index of the Egyptian Stock Exchange fell 1.9 percent amid foreign selling, with the shares of 27 of the total 30 companies listed in the index declining.

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