Gulf markets fall on expectations of big U.S. rate hike

Gulf bourses fell on Wednesday, mirroring global markets concerned about another big U.S. Federal Reserve rate hike, Reuters reported.
Stock markets were in a sober mood after the U.S. August inflation report dashed hopes that the Fed could scale back its rate policy tightening in the coming months.
Investor sentiment in the GCC was also subdued as the report fuelled bets that interest rates may have to be raised higher for longer. Most GCC currencies are pegged to the U.S. dollar and broadly follow the Fed’s policy moves.
Meanwhile, oil prices fell 0.4%, to $92.79 a barrel by 0407 GMT, despite a robust OPEC oil demand growth forecast.
Saudi Arabia’s benchmark index .TASI fell 1.3%, with financial and property stocks leading the losses. Luxury developer Retal Urban Development Company 4322.SE fell more than 2% and lender Al Rajhi Bank 1120.SE dropped 1.9%.
Oil behemoth Saudi Aramco 2222.SE was also down 0.7%.
A day after recording its biggest intraday surge in nearly three months on the back of Salik’s IPO plan, the Dubai index .DFMGI fell 0.9%, dragged by financial and property stocks.
Dubai’s largest lender Emirates NBD Bank ENBD.DU and Emaar Properties EMAR.DU shares slid 2.3% and 1.8% respectively.
Banking shares also dragged Abu Dhabi .FTFADGI 0.2% lower, as it ended a five day rally, with the country’s largest lender, First Abu Dhabi Bank FAB.AD losing 1.4%.
Abu Dhabi National Energy Company (TAQA) TAQA.AD shares surged 12.4% after Multiply Group MULTIPLY.AD acquired a 7.3% stake in the group in a deal worth 10 billion dirhams ($2.72 billion). Multiply Group was up 1.6%.
In Qatar, the benchmark index .QSI was down 1.7%, with almost all its constituent in negative territory. Banks fell the most, with the Gulf’s largest lender Qatar National Bank QNBK.QA down 2.5%.