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Gulf bourses were mixed on Wednesday as hawkish comments from the U.S. Federal Reserve sent global equities lower, while Qatar ended 1.5% higher.
Fed Governor Lael Brainard on Tuesday said she expects a combination of interest rate increases and a rapid balance sheet runoff to bring U.S. monetary policy to a "more neutral position" later this year.
The dollar hit its highest in almost two years, while expectations of new sanctions on Russia raised oil supply concerns, sending crude prices higher. The Qatari index gained 1.5%, its best day in over a month, after the exchange said on Tuesday it signed a deal with the London Stock Exchange Group for a new trading system.
Dubai's benchmark index reversed early gains to end the session flat. Investors paused following the rally last week after the subscription for state-run Dubai Electricity and Water's initial public offering opened.
DEWA is set to raise 22.32 billion dirhams ($6.1 billion) after pricing its shares at the top end of the range of 2.25 dirhams to 2.48 dirhams, in the Gulf's biggest IPO since Saudi Aramco's record deal in 2019.
"The market could return to the upside next week as DEWA's trading launch could attract investors again," said Daniel Takieddine, CEO at MENA BDSwiss. Emirates Refreshments jumped nearly 15% after it sought shareholder approval to increase issued share capital to 330 million dirhams. Saudi Arabia's benchmark index ended 0.4% higher, while the Abu Dhabi index inched lower to 0.2%.
Egypt's main share index ended 0.3% lower, weighed by material and consumer stocks.
(Reporting by Siddarth S in Bengaluru; Editing by Krishna Chandra Eluri)