Mideast Stocks: Most Gulf bourses drop; Egypt extends gains

PHOTO

Stock markets in the Gulf dropped on Monday, led by the Qatar index, tracking global peers lower as investors look ahead to a key U.S. inflation marker later in the week.

Saudi Arabia's benchmark index slipped 1.1%, the sharpest intraday fall in nearly two months, with oil giant Saudi Aramco and the kingdom's largest lender Saudi National Bank sliding 1.1% and 1.4%, respectively. Among other losers, Riyad Bank slumped 4.9%, the deepest drop in over two month, and Al Rajhi Bank slipped 3.5%, the steepest decline in about two months as both lenders were trading ex-dividend.

The Qatari benchmark index declined 1.2%, the sharpest drop in over a month with all stocks in the red. Qatar National Bank, the region's largest lender, slumped 3.3% to 14.2 riyal, hitting its lowest in nearly six years. In Abu Dhabi, the benchmark index was little changed, with conglomerate International Holding and its unit Multiply shedding 0.1% and 1.3%, respectively, while First Abu Dhabi Bank, the UAE's largest lender gained 1.5%.

Dubai's benchmark index was up marginally with gains in real estate, finance, consumer staples, and utilities sectors offsetting the losses in communication services, industry and real estate. Dubai Islamic Bank rose 1% and Emirates Central Cooling added 0.6%, while Emirates Integrated Telecommunication and low-cost flyer Air Arabia slipped 2.3% and 1.1%, respectively.

The main data event of the week will be the U.S. core personal consumption expenditure (PCE) price index on Friday, which is seen rising 0.3% in February, keeping the annual pace at 2.8%. Anything higher would be taken as a setback to hopes for a Federal Reserve rate cut in June.

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 for a third straight session and ended 1% higher with most sectors in the green. Talaat Mostafa gained 1.9% and El Sewedy Electric added 2.9%.