(Reuters) – Major stock exchanges in the Gulf declined on Wednesday, tracking global equities ahead of release of U.S. CPI data as concerns around the Federal Reserve’s rate trajectory dampened investor sentiment.
The decline was led by the Qatari index (.QSI), which slipped 0.4% after a 1.1% decline in Gulf’s largest lender Qatar National Bank (QNBK.QA) and a 0.8% decrease in Commercial Bank (COMB.QA).
Abu Dhabi’s benchmark index (.FTFADGI) dropped 0.2%, putting it on track to end a four-session winning streak, with Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) losing 0.5% and Adnoc Gas (ADNOCGAS.AD) slipping 0.6%.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) slipped 0.17%, while Tokyo’s Nikkei (.N225) eased 0.21%.
The U.S. inflation data is slated for release later in the day, with expectations of core month-on-month inflation of 0.2% in August, the same as July.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy, as most regional currencies are pegged to the U.S. dollar.
Dubai’s main index (.DFMGI) fell 0.1% as half of its stocks were in the red, including blue-chip developer Emaar Properties (EMAR.DU) which declined 0.7%, while Emirates Central Cooling Systems Corporation (EMPOWER.DU) dropped 1.1%.
Saudi Arabia’s benchmark index (.TASI) edged 0.1% lower, trading near a three-month low, pressured by a 2.7% slump in Gulf’s largest petrochemical firm Saudi Basic Industries (2010.SE) and a 0.9% drop in Dr Sulaiman Al-Habib Medical Services (4013.SE).
However, IT firm Al Moammar Information Systems (7200.SE) jumped 3% after it launched MIS Pay, a “buy now and pay later” service.
Crude prices, a key contributor to Gulf economy, also extended gains on supply concerns over Libyan output hit and OPEC+ countries’ commitment to production cut.
Brent crude was up 0.7% or $0.60 to $92.64 a barrel by 0800 GMT.
