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Most Gulf equities end lower ahead of Powell's Jackson Hole speech
Most Gulf equities end lower ahead of Powell's Jackson Hole speech
About this update from Al Rajhi Bank
By Md Manzer Hussain Most Gulf stocks fell on Wednesday in tandem with weaker global share markets, as investors wait for signals on the U.S. interest rate outlook from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium later this week.When Powell gives his speech on Friday traders will be watching closely for any pushback against expectations for a rate cut next month. U.S. monetary policy strongly influences Gulf markets, where most currencies are pegged to the dollar.The Qatari benchmark index QSE:GNRI fell for a fourth straight session, closing down 1.6% as profit-taking persisted after last week's earnings-fuelled rally. All constituents declined, including Qatar Islamic Bank QSE:QIBK, down 2.9%, and Qatar National Bank QSE:QNBK, off 1.5%. "The market in Qatar is awaiting the FTSE Global Equity Index quarterly review this week, which could influence trading activity," said Osama Al Saifi, managing director for MENA at Traze.com.FTSE Global Equity Index is considered a key benchmark among global institutional investors.Dubai's benchmark stock index DFM:DFMGI dropped 0.5% after four sessions of gains, with most sectors lower. Blue-chip developer Emaar Properties DFM:EMAAR lost 1%, and Emirates NBD DFM:EMIRATESNBD fell 1.3%. The emirate's largest lender ENBD issued a 1 billion renminbi ($139 million) three-year Dim Sum bond at par to yield 2.4%, IFR reported. "The index continues to linger near multi-year highs, with its next direction uncertain. A correction remains possible if the market fails to find new support," said Al Saifi.The Abu Dhabi benchmark index ADX:FADGI eased 0.1%, weighed down by a 0.9% drop in Abu Dhabi Islamic Bank ADX:ADIB and a 2% fall in ADNOC Drilling ADX:ADNOCDRILL.Saudi Arabia's benchmark stock index TADAWUL:TASI was little changed, as gains in finance and consumer discretionary shares outweighed losses elsewhere. Al Rajhi Bank TADAWUL:1120 added 0.9% and Arab National Bank TADAWUL:1080 advanced 2.4% while Saudi Basic Industries TADAWUL:2010 and ACWA Power TADAWUL:2082 dropped 2.6% and 1.2% respectively. Outside the Gulf, Egypt's blue-chip index EGX:EGX30 slid 1% with almost all of its constituents in red. Commercial International Bank EGX:COMI retreated 1.5% and Juhayna Food EGX:JUFO dropped 5.2%.SAUDI ARABIATADAWUL:TASI ended flat at 10,878KUWAIT(.BKP) down 0.3% to 9,301QATARQSE:GNRI fell 1.6% to 11,307EGYPTEGX...