Most Gulf markets fall on Fed rate cut concerns
By Md Manzer Hussain
Nov 17 (Reuters) -Most Gulf stock markets fell on Sunday after U.S economic data and comments from Federal Reserve officials pointed to a slower pace of interest-rate cuts.
Investors increased bets on the Fed leaving interest rates unchanged at its December meeting and dialled back expectations for easing in 2025.
The Fed's decisions have a significant impact on monetary policy in the Gulf as most of the region's currencies are pegged to the U.S. dollar.
The Qatari benchmark index .QSI slipped 0.4%, with almost all of its constituents falling, led by the finance, communication and energy sectors.
Qatar National Bank QNBK.QA, the region's largest lender, lost 1.4% and Qatar Navigation QNNC.QA was down 1.1%.
Saudi Arabia's benchmark index .TASI snapped three sessions of losses, edging up 0.2% helped by gains in the IT, utilities, real estate, industry, healthcare and insurance sectors.
Medgulf 8030.SE rose 10% for its biggest daily gain in more than six months. The insurer said in a statement to the Saudi Exchange that it had received a circular from the Insurance Authority on a new mechanism for allocating reinsurance premiums to the local market.
All bar two insurance stocks closed higher with Al Rajhi Company For Cooperative Insurance 8230.SE up 3.9%, and Saudi Reinsurance 8200.SE gaining 6.9%.
Saudi Re said in a statement that the new mechanism would help increase Saudi reinsurance revenue by more then 5% from 2023.
Outside the Gulf, Egypt's blue-chip index .EGX30 reversed the previous session's gain with a 0.7% fall, with most sectors in the red. Telecom Egypt ETEL.CA lost 2.6% after it reported a 13% decrease in quarterly net profit on Thursday.
However, Juhayna Food JUFO.CA gained 3.7% after it posted around a 200% jump in third quarter net profit.
SAUDI ARABIA | .TASI rose 0.2% to 11,812 |
KUWAIT | .BKP was up 0.2% to 7,849 |
QATAR | .QSI lost 0.4% to 10,411 |
EGYPT | .EGX30 dropped 0.7% to 31,252 |
BAHRAIN | .BAX ended flat to 2,053 |
OMAN | .MSX30 was down 0.4% to 4,626 |
Reporting by Md Manzer Hussain; Editing by Kirsten Donovan
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