Most Gulf markets track oil prices lower; Egypt jumps

(Reuters) – Most stock markets in the Gulf ended lower on Tuesday on falling oil prices, while the approaching Jackson Hole Symposium also weighed on investor sentiment.

Oil prices – which fuels the Gulf economy – were little changed as investors remained downbeat on China’s economic malaise hobbling demand from the world’s top crude importer, limiting the impact of supply cuts.

Saudi Arabia’s benchmark index (.TASI) dropped 0.3%, extending losses from the previous session, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 1%, while oil giant Saudi Aramco (2222.SE) was down 0.2%.

In Abu Dhabi, the index (.FTFADGI) eased 0.1%.

The Qatari benchmark (.QSI) gave up early gains to finish 0.1% lower, weighed down by a 1% fall in Commercial Bank (COMB.QA) and a 0.3% decrease in petrochemical maker Industries Qatar (IQCD.QA).

Dubai’s main share index (.DFMGI) gained 0.4%, helped by a 1.4% gain in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The Dubai stock market remained stable with traders being cautious ahead of the Federal Reserve’s event this week. Traders could monitor speeches from the Fed’s governors for clues on monetary policy, said Ahmed Negm, Head of Market Research MENA at XS.com.

Oil and gas exporting countries in the Gulf tend to follow the Fed’s rate move, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Outside the Gulf, Egypt’s blue-chip index (.EGX30) advanced 1.7%, as most of the stocks on the index were in positive territory including tobacco monopoly Easter Company (EAST.CA), which jumped 8.5% after receiving several offers from foreign investors to buy up to 15.3% of the shares.

Egypt promised the International Monetary Fund it would roll back the state’s involvement in the economy and allow private companies a much greater role as part of a $3 billion, 46-month financial support package signed in December.

Egypt’s petroleum ministry on Tuesday announced a new oil discovery in the Geisum and Tawila West Concession in the Gulf of Suez.