Atiq Sharif
(Reuters) – Most Gulf stock markets were subdued on Sunday amid geopolitical rifts and uncertainty over U.S. Federal Reserve policy.
In its first direct attack on Israel on April 13, Iran launched a salvo of more than 300 missiles and drones in what it said was retaliation for Israel’s alleged deadly strike on its embassy compound in Damascus on April 1.
Iran’s Supreme Leader Ali Khamenei thanked the country’s armed forces for attacking Israel, saying the country had demonstrated its power no matter how many targets were hit, Iran’s official news agency reported on Sunday.
Elsewhere, Chicago Federal Reserve President Austan Goolsbee said on Friday that progress in reducing inflation has “stalled” this year, becoming the latest U.S. central bank chief to backtrack on an earlier focus on the looming need to cut interest rates.
Among individual Middle East markets, Saudi Arabia’s benchmark index rose 0.1%, helped by a 2.6% rise in ACWA Power shares.
The International Monetary Fund said on Thursday that the Middle East economy will grow at a slower pace this year than previously forecast as the war in Gaza, attacks on shipping in the Red Sea and declining oil production add to existing problems of high debt and borrowing costs.
The IMF has revised down its economic growth forecast for the Middle East and North Africa (MENA) region for 2024 to 2.7% from 3.4% in its October regional forecast.
The Qatar benchmark fell 0.4%, led by a 1.6% fall in petrochemicals maker Industries Qatar and a 1% fall in Qatar Islamic Bank.
Outside the Gulf, Egypt’s blue-chip index rose 1% after falling more than 4% in previous sessions, helped by a 1.4% rise in shares of leading lender Commercial International Bank.
Meanwhile, Egypt’s Central Bank’s net foreign asset (NFA) deficit fell to its lowest level in more than two years in March, apparently helped by a mammoth sale of development rights and currency reform, data published on the CBE website showed. . .
SAUDI ARABIA rose 0.1% to 12,518.
QATAR fell 0.4% to 9,792.
EGYPT added 1% to 28,623.
BAHRAIN fell 0.2% to 2017.
OMAN fell 0.3% to 4,704.
KUWAIT added 0.9% to 7,643.