Saudi stocks fall on Feds rate increase concerns, Dubai gains
Business
Egyptian stocks had significant price corrections after approaching its high
DUBAI (Reuters) - Among the Gulf bourses, Saudi Arabia's stock market had the weakest performance on Monday due to concerns over rate increases by the US Federal Reserve.
The world's largest economy is performing considerably better than anticipated which caused two Fed members to warn that interest rates will need to rise, according to a rush of US statistics.
The majority of the Gulf Cooperation Council nations such as Qatar, Saudi Arabia and the United Arab Emirates have linked their currencies to the dollar and closely follow the Fed's policy decisions. Losses across the majority of sectors contributed to a 1.2% decline in Saudi Arabia's benchmark index.
Al Rajhi Bank and Riyad Bank, the two largest Islamic banks in the world by assets, both saw their share prices drop. Nevertheless, after the telecom operator reported a 54.6% increase in full year net profit, shares of Etihad Etisalat surged 5.7% to its highest intraday gain since June.
The banking, real estate and industrial sectors all saw advances helping Dubai's benchmark index tack on 0.1%. Shares of toll road operator Salik jumped 0.7% and lender Emirates NBD rose 1.5%. The index in Abu Dhabi decreased slightly being held back by losses of 1.6% in Aldar Properties and 1.3% in Abu Dhabi National Oil Company for Distribution.
Qatar's stock index finished unchanged.
The biggest dairy and beverage firm in the country, Baladna, saw its stock rise 2.7% as a result of its deal to manufacture cheese and snack products with the Bel Group.
With virtually all of its component firms down Egypt's blue-chip index fell three percent outside of the Gulf extending losses for the third day.
Fawry, a provider of electronic payments, and Commercial International Bank had declines of 3.6% and 4.8% respectively. According to CEO MENA at BDSwiss Daniel Takieddine the Egyptian stock market had significant price corrections after approaching its high and trading volumes dropped.
