Gulf markets drop on weaker earnings; US inflation data in focus
By Md Manzer Hussain
May 14 (Reuters) -Stock markets in the Gulf slipped on Monday, led by the Saudi index, on weaker corporate results, while investors awaited U.S. inflation data to gauge the Federal Reserve's policy path for the rest of this year.
Saudi Arabia's benchmark stock index .TASI dropped 1.1% to 12,121, its lowest level in over there months, with all constituents posting losses, led by healthcare, IT and real estate stocks.
Saudi National Bank1180.SE, the kingdom's largest lender, fell 1.4% and Rabigh Refining and Petrochemical 2380.SE known as Petro Rabigh, declined 4.2%.
Petro Rabigh, the hydrocarbon and petrochemicals producer, reported its quarterly loss widened to 1.37 billion riyals from 964 million riyals a year earlier.
Among other fallers, Emaar Economic City4220.SE dropped 5.2% after the developer's first-quarter loss widened.
Dubai's benchmark index .DFMGI dropped 0.9% with most sectors in the red. The blue-chip developer Emaar Properties EMAR.DU slid 2.2 and Air Arabia AIRA.DU declined 5.2%.
The low-cost flyer Air Arabia posted a 22% decline in its quarterly profit on Monday.
The Qatari benchmark index .QSI was down after four consecutive sessions of gains and fell 0.2%, dragged down by a 1.3% drop in Qatar Islamic Bank QISB.QA and a 1.2% dip in Industries Qatar IQCD.QA.
In Abu Dhabi, the benchmark index .FTFADGI fell 0.4% with conglomerate Alpha Dhabi ALPHADHABI.AD dropping 1.2% and First Abu Dhabi BankFAB.AD, the UAE's largest lender, slipping 1.3%.
Among other losers, FertiglobeFERTIGLB.AD slid 1.5% after the MENA's largest nitrogen fertilizer maker, posted a 14% decrease in its first-quarter net profit.
"The market continued to trend toward its lows of the year and could remain exposed to the downside", said Joseph Dahrieh, Managing Principal at Tickmill.
Meanwhile, investors are awaiting the U.S. Consumer Price Index data due on Wednesday for clues to when the Federal Reserve will consider cutting interest rates.
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 .EGX30 was down 0.2%, with most sectors in negative territory. Eastern CompanyEAST.CA fell 2.2% and E-finance for Digital EFIH.CA shed 2.3%.
However, Fawry for Banking Technology FWRY.CA climbed 4% after the e-payment provider reported a 134.8% surge in its quarterly net profit.
SAUDI ARABIA | .TASI dropped 1.1% to 12,121 |
KUWAIT | .BKP was down 0.2% to 7,871 |
QATAR | .QSI fell 0.2% to 9,646 |
EGYPT | .EGX30 lost 0.2% to 25,340 |
BAHRAIN | .BAX ended flat at 2,023 |
OMAN | .MSX30 was down 0.3% to 4,758 |
ABU DHABI | .FTFADGI lost 0.4% to 9,058 |
DUBAI | .DFMGI declined 0.9% to 4,137 |
Reporting by Md Manzer Hussain; Editing by Alexandra Hudson
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