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By Celine Aswad
DUBAI, July 11 (Reuters) - Blue-chip banks pushed Middle East stock markets slightly higher on Tuesday, a day ahead of the testimony from Federal Reserve Chair Janet Yellen for clues on when the central bank would tighten U.S. monetary policy.
Yellen's semi-annual monetary policy testimony before Congress will be on Wednesday and Thursday. San Francisco Federal Reserve President John Williams said on Tuesday in Sydney that it was a reasonable view to expect one more rate hike this year, and his own view was to start adjusting the central bank's balance sheet in the next few months.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, United Arab Emirates and Qatar.
In Doha, the majority of the listed banks were firm with the largest of them, Qatar National Bank
In the United Arab Emirates, Abu Dhabi Commercial Bank
Saudi Arabian banks were mixed as some investors turned their focus to upcoming second quarter results. Heavyweight National Commercial Bank
Analysts at Riyad Capital expect net income for the sector to be flat in the second quarter from the year ago period as provisions may continue to weigh on performance - which they have been for the last several quarters - and because of a dip in credit demand. Nevertheless, they predict operating margins to witness some improvement.
"While SAIBOR (the interbank lending rate) has been flat in the quarter, we believe cost of funds have declined given rising non-interest bearing deposits combined with some growth in advances," said the note by Riyad Capital.
Mobile phones and home appliances retailer United Electronics Company
Its shares soared by their 10 percent daily limit on Monday after reporting a near quadrupling in second quarter net income from a year earlier and a 15 percent growth in sales.
The index
In Egypt, the index
Shares of private equity firm Qalaa Holding
Analysts at Naeem Brokerage expect positive operating trends in the coming quarters, although they "still anticipate losses" mainly because of higher debt servicing costs.
Orascom Telecom
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SAUDI ARABIA
* The index
DUBAI
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ABU DHABI
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QATAR
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EGYPT
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KUWAIT
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BAHRAIN
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($1 = 17.8700 Egyptian pounds)
($1 = 3.7501 riyals)
($1 = 17.8300 Egyptian pounds)
(Editing by Pritha Sarkar) ((celine.aswad@thomsonreuters.com)(+9715 56224 7653)(Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))