On Thursday, most significant Gulf markets fell in step with their worldwide counterparts as investor sentiment was dampened by expectations that the U.S. Federal Reserve would raise interest rates.
More interest rate increases are anticipated, according to Federal Reserve officials, as the American central bank continues its attempts to manage inflation.
The majority of the Gulf Cooperation Council nations, such as Saudi Arabia, the United Arab Emirates, and Qatar, have their currencies pegged to the American dollar and closely follow the Federal Reserve’s policy decisions, making the region particularly vulnerable to the effects of monetary tightening in the largest economy in the world.
Nearly all sectors had losses, which contributed to the Qatari Stock Index’s (.QSI) 0.6% decline. The largest lender in the Gulf, Qatar National Bank, saw its value fall 1.1%.
The Islamic banks Qatar International Islamic Bank and Masraf Al Rayan, which are considered index heavyweights, fell 2.4% and 1.5 percent, respectively.
The benchmark stock index for Saudi Arabia (.TASI) declined 0.6%, with losses in most industries, including the oil behemoth Saudi Aramco’s 0.9% decline and Al Rajhi Bank’s 0.8% decline.
Retal Urban, a developer of upscale properties, and Savola Group saw declines of 0.3% and 2%, respectively.
The benchmark stock index (.FTFADGI) in Abu Dhabi dropped 0.2% as a result of Al Dar Properties’ 2.5% loss and First Abu Dhabi Bank’s 0.4% asset-based decline.
After reporting a decrease in quarterly net profit, ADNOC Distribution saw a 0.9% reduction.
As Dana Gas announced on Wednesday a decline in full-year net earnings, its stock fell 1.7%.