Gulf stock markets recorded a mixed performance at the close on Tuesday, with the Qatar Stock Exchange declining amid a state of caution regarding the future moves of the US Federal Reserve.
Financial markets expect the US central bank to raise the key rate above 5 percent and keep it at that level to rein in soaring inflation in an economy where the labor market remains strong even nearly a year following the sharpest round of rate hikes in the United States in 40 years.
Investors are looking forward to a speech by Federal Reserve Chairman Jerome Powell at the Economic Club of Washington later in the day.
Most Gulf countries peg their currencies to the dollar, while Saudi Arabia, the UAE and Qatar follow the example of the United States in their monetary policy.
The Qatari stock index fell while natural gas prices continued to drop strongly. But Farah Murad, senior market analyst at XTP for the Middle East and North Africa, said the market might find some support from strong earnings in the financial sector.
The Saudi index fell for the seventh session in a row, losing 0.8 percent, affected by pressure on the heavyweight finance and health care sectors.
In Abu Dhabi, the index recorded a slight increase, supported by a two percent jump in the shares of Aldar Properties, following the company launched a new residential project.
The Dubai Stock Exchange index rose 0.1 percent, continuing its rise for the fifth session in a row, with Dubai Electricity and Water Company (DEWA) and Salik, a road toll collection company, rising 0.8 percent each.
Outside the Gulf region, the main index of Egyptian blue-chips rose 1.9 percent, extending its gains for the second consecutive session, supported by the shares of the Commercial International Bank, which rose 3.1 percent.
Farah Murad mentioned that the Egyptian Stock Exchange derives support from the state of optimism ahead of a huge program of initial public offerings that is expected to be announced by the Egyptian government.
Egyptian Prime Minister Mostafa Madbouly said following a cabinet meeting last week that the government was seeking to announce a detailed plan to offer stakes in at least 20 state-owned companies over the next year.
In Saudi Arabia, the index fell 0.8 percent to 10,470 points.
In Abu Dhabi, the index settled at 9919 points.
In Dubai, the index increased 0.1 percent to 3,405 points.
In Qatar, the index lost 1.3 percent to close at 10,572 points.
In Egypt, the index rose 1.9 percent to 16,900 points.
In Bahrain, the index settled unchanged at 1935 points.
In the Sultanate of Oman, the index rose 0.1 percent to 4,758 points.
In Kuwait, the index settled at 8238 points.
