Most stock markets in the Gulf fell in early trade on Tuesday, tracking losses in oil prices, while investors awaited US economic data and comments from Federal Reserve officials this week.
Saudi Arabia’s benchmark index lost 0.1%, hit by a 0.4% fall in the oil behemoth Saudi Aramco.
Oil prices – a catalyst for the Gulf’s financial markets – eased as investor disappointment over China’s latest stimulus plan and oversupply concerns weighed on the market, along with a stronger dollar.
A stronger dollar makes commodities denominated in the US currency, such as oil, more expensive for holders of other currencies, and tends to weigh on prices. Saudi energy index was down 0.4%.
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In Abu Dhabi, the index was down 0.1%. Investors are also bracing for further signals from US inflation data and Fed speakers this week.
Markets are pricing in an 87% chance of the Fed cutting rates in December by 25 basis points.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by decisions of the Fed, as most regional currencies are pegged to the US dollar.
Gulf bourses end mixed on weak oil, ahead of US data
The Qatari index dropped 0.7%, hit by a 1.4% fall in petrochemical maker Industries Qatar and 0.6% decreased in the Gulf’s biggest lender Qatar National Bank.
Dubai’s main share index, however, rose 0.4%, led by a 1.8% rise in blue-chip developer Emaar Properties , while its unit Emaar Development jumped 6.7%, after the developers reported higher nine-month net profits.
Source: Brecorder
