Mideast Stocks: Gulf bourses end mixed; Egypt snaps 7-day rally on profit-taking

PHOTO

Stock markets in the Gulf ended mixed on Wednesday on rising oil prices, disappointing corporate earnings and ahead of a U.S. Federal Reserve meeting, while the Egyptian index ended seven sessions of gains as investors locked in profits.

The Federal Reserve is expected to raise interest rates by three-quarters of a percentage point for the fourth straight time, but open the door to a future slowdown in its policy tightening as it balances the risk of stubbornly high inflation against the economic strains of tighter credit.

Most Gulf currencies are pegged to the dollar and Qatar, Saudi Arabia and the United Arab Emirates usually copy any monetary policy change in the United States.

Dubai's main share index gained 0.7%, with blue-chip developer Emaar Properties gaining 2% and Dubai Electricity And Water Authority finished 1.6%.

Shareholders in Dubai's Emirates Central Cooling Systems Corporation have increased the size of the stake being offered in an initial public offering (IPO) to 15% from 10%, citing strong demand for the shares.

Successful IPOs continue to attract investors while traders remain cautious before the U.S. central bank's meeting, said Daniel Takieddine, CEO MENA at BDSwiss. "The market could thus see some volatility in the next trading sessions."

In Abu Dhabi, the index added 0.2%, helped by a 2.7% rise in Multiply Group. However, Emirates Telecommunications Group eased 0.2%, as quarterly revenue fell, although posted a rise in net profit. The telecoms firm said the third-quarter revenue witnessed significant exchange rate volatility in Egyptian pound, Pakistani rupee and Moroccan dirham as a result of global macro-economic turbulence.

Saudi Arabia's benchmark index reversed early losses to conclude flat.

Outside the Gulf, Egypt's blue-chip index dropped 1.6%, snapping a seven-day winning streak, as most of the stocks on the index were in negative territory including Commercial International Bank, which was down 2.4%.

According to Takieddine, the market remains exposed to some volatility and more losses after Fed's interest rates decision.