Equity markets in the Gulf fell today amid investors’ expectations that the Federal Reserve (the US central bank) will adopt a tighter monetary policy to curb inflation.
Oil prices, the catalyst for growth in the region, are falling, as higher interest rates in the US and other countries could slow global economic growth and thus reduce oil demand.
Five of the six Gulf Cooperation Council countries fix their currencies only to the dollar and take measures that broadly align with U.S. monetary movements, while the Kuwaiti dinar is pegged to a basket of currencies believed to be dominated by the dollar.
According to “Reuters”, bank stocks suffered the largest losses in all markets, as rising interest rates could lead to a decline in lending to businesses and individuals.
The leading equity index in Saudi Arabia fell 1.4 percent as shares of all banks declined and pushed other sectors to fall.
In Qatar, almost all stocks fell, which led to a 1.7% drop in the index.
The leading equity index in Dubai fell 0.9%, and stocks of heavy-loss financial and real estate companies led.
The Abu Dhabi index fell 0.2% after five days of gains, ending the longest streak in a month.
The market has received some support from the Abu Dhabi National Energy Company (TAQA), whose shares rose 14.6% after the Multiplay Group acquired a 7.3% stake in a $ 10 billion deal. of dirhams (2.72 billion dollars).
In Egypt, the leading equity index on the Egyptian Stock Exchange fell 1.9% among sales deals, with the shares of 27 of the 30 companies listed in the index declining.
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