Arabian Gulf bourses take a hit

23/08/2016 05:29 AST

Shares finished lower across the Arabian Gulf on Monday as the renewed prospect of a US interest rate rise later this year impacted emerging markets.

The Federal Reserve vice chairman Stanley Fischer said that the US was close to meeting targets on employment and inflation, fuelling speculation that a rise in interest rates is imminent before the end of the year. The US dollar rose and emerging equities fell in response.

Regional indexes were also affected by falling oil prices after Iraq said that it would boost its oil exports by about 5 per cent in the coming days. Brent crude fell by about 3 per cent on the news, trading at about $49.33 per barrel during the late afternoon.

Saudi stocks bore the brunt of negative sentiment in the region on Monday, with the Tadawul closing down 1.6 per cent. The Qatar Exchange ended the day 0.7 per cent lower.

The Dubai Financial Market General Index ended a quiet day 0.6 per cent lower at 3,535.29, with just four stocks on the headline index posting gains.

Damac Properties led the sell-off among big names, closing off 2 per cent at Dh2.42, with DIB and Emaar Malls also falling.

Shares in GFH closed 0.4 per cent lower, after the Bahraini financial group announced it had signed a memorandum of understanding to acquire a majority stake in its fellow Bahraini institution Bank Al Khair for an undisclosed sum.

The Abu Dhabi Securities Exchange General Index closed 0.1 per cent lower at 4,510.55. Aldar Properties and ADCB were among the worst affected big names, both closing off 1 per cent.

The National