Most major Gulf bourses ease on growth worries

Most major stock markets in the Gulf fell on Monday on concerns that inflation-busting interest-rate hikes in the United States and Europe will weaken the global economy.

US Federal Reserve Chair Jerome Powell headlines a host of policymakers at a symposium in Jackson Hole, Wyoming later in the week, with expectations growing of further rate hikes rather than a pivot to a more dovish policy.

A Reuters poll of economists forecast the Fed will raise rates by 50 basis points in September, with the risks skewed towards a higher peak.

The Qatari benchmark index dropped 1.2 per cent with most of its stocks in negative territory including Qatar Islamic Bank , which was down 1.4 per cent.

Dubai’s main share index finished 0.3 per cent lower, hit by a 1.2 per cent fall in blue-chip developer Emaar Properties.

Emaar Properties said on Saturday it is selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF).

Emaar said in a bourse filing its board has in principle approved the sale, which values Namshi at $335.2 million, as a divestment to a related party.

In Abu Dhabi, the index fell 0.4 per cent, with telecoms firm e&, formerly known as Emirates Telecommunications Group, dropping one per cent.

Saudi Arabia’s benchmark index reversed early losses to edge 0.1 per cent higher, helped by a 0.9 per cent rise in Al Rajhi Bank .

However, the index’s gains were limited by a 1.2 per cent fall in Saudi Aramco as the oil giant went ex-dividend.

Outside the Gulf, Egypt’s blue-chip index declined 0.9 per cent, with top lender Commercial International Bank retreating 2.1 per cent. — Reuters