Mideast Stocks: Gulf markets drop on lower oil prices; Egypt gains

PHOTO

Most stock markets in the Gulf ended lower on Wednesday as oil prices fell, with investors also awaiting the U.S. Federal Reserve's policy decision later in the day for hints on its interest rate path.

Oil prices declined for a third day amid increasing hopes of a ceasefire agreement in the Gaza conflict, and on rising crude inventories and production in the U.S.

Dubai's benchmark index dropped 0.5% to 4,133, its lowest levels in over three months, with real estate and consumer staples sectors leading in losses. The blue-chip developer Emaar Properties slumped 6.1%, the steepest fall in nearly two years as the firm traded ex-dividend.

Saudi Arabia's benchmark stock index was down 0.4% after two straight session of gains with most sectors in the red. Middle East Pharmaceutical lost 2% while Saudi National Bank, the kingdom's largest lender, shed 0.9%. Meanwhile, Saudi Arabia's real gross domestic product (GDP) decreased 1.8% year-on-year in the first quarter, flash estimates showed on Wednesday, as a decline in oil activities continued to hurt overall growth.

In Abu Dhabi, the benchmark index slipped 0.4%, snapping three straight sessions of gains with conglomerate Alpha Dhabi Holding sliding 1.6% and Emirates Telecommunications, known as e&, dropping 2.2%. The telecom provider e& is considering an acquisition of European cable and pay-TV operator United Group at a valuation of around 8 billion euros ($8.6 billion), Bloomberg News reported on Tuesday.

The Qatari benchmark index eased 0.2%, pressured by a 1.1% drop in Qatar Islamic Bank and a 3.4% slide in Mesaieed Petrochemical. Investors are awaiting comments from Fed Chair Jerome Powell later in the day that could give a clearer sense on rate cuts this year.

Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt's blue-chip index was up 3.4%, with all its constituents posting gains. Talaat Mostafa advanced 7.9% and Commercial International Bank added 1.5%.

Egypt's net foreign assets deficit shrank $17.8 billion in March, central bank data showed, after remittances, foreign portfolio investment and a $5 billion payment from the UAE poured into the country.