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Most Gulf markets fall on Fed rate cut concerns

Published 11/17/2024, 08:42 AM
Updated 11/17/2024, 08:45 AM
© Reuters. An investor walks through the Dubai Financial Market in Dubai, United Arab Emirates November 8, 2020. REUTERS/Christopher Pike/File Photo
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By Md Manzer Hussain

(Reuters) - Most Gulf stock markets fell on Sunday after U.S economic data and comments from Federal Reserve officials pointed to a slower pace of interest-rate cuts.

Investors increased bets on the Fed leaving interest rates unchanged at its December meeting and dialled back expectations for easing in 2025.

The Fed's decisions have a significant impact on monetary policy in the Gulf as most of the region's currencies are pegged to the U.S. dollar.

The Qatari benchmark index slipped 0.4%, with almost all of its constituents falling, led by the finance, communication and energy sectors.

Qatar National Bank, the region's largest lender, lost 1.4% and Qatar Navigation was down 1.1%.

Saudi Arabia's benchmark index snapped three sessions of losses, edging up 0.2% helped by gains in the IT, utilities, real estate, industry, healthcare and insurance sectors.

Medgulf (TADAWUL:8030) rose 10% for its biggest daily gain in more than six months. The insurer said in a statement to the Saudi Exchange that it had received a circular from the Insurance Authority on a new mechanism for allocating reinsurance premiums to the local market.

All bar two insurance stocks closed higher with Al Rajhi Company For Cooperative Insurance up 3.9%, and Saudi Reinsurance gaining 6.9%.

Saudi Re said in a statement that the new mechanism would help increase Saudi reinsurance revenue by more then 5% from 2023.

Outside the Gulf, Egypt's blue-chip index reversed the previous session's gain with a 0.7% fall, with most sectors in the red. Telecom (BCBA:TECO2m) Egypt lost 2.6% after it reported a 13% decrease in quarterly net profit on Thursday.

However, Juhayna Food gained 3.7% after it posted around a 200% jump in third quarter net profit.

SAUDI ARABIA rose 0.2% to 11,812

KUWAIT was up 0.2% to 7,849

QATAR lost 0.4% to 10,411

EGYPT dropped 0.7% to 31,252

© Reuters. An investor walks through the Dubai Financial Market in Dubai, United Arab Emirates November 8, 2020. REUTERS/Christopher Pike/File Photo

BAHRAIN ended flat to 2,053

OMAN was down 0.4% to 4,626

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