Gulf equities fell in early trade on Wednesday in a market that remained cautious with the Federal Reserve rate direction undecided by mixed signs in the U.S. labor market.
The U.S. job creation recovery was even stronger than predicted back in November, yet the unemployment rate hit a four-year high of 4.6 percent. Markets wait for the U.S. November consumer price inflation data, which is due on Thursday.
The Gulf markets will follow changes in the expectations of monetary policy in the United States since most of the currencies in the region are pegged to the dollar.
The Qatari benchmark index fell 0.2 percent, where the majority of stocks trading down. Gulf international services declined by 1 percent and Qatar Navigation by 1.4 percent.
Saudi Arabia’s benchmark stock index dropped 0.6 percent, with a decline in finance, IT, and communication. Saudi National Bank declined by 0.8 percent, and Seera Holding Group decreased by 1.7 percent.
However, the Abu Dhabi benchmark index fell by 0.3 percent, and the majority of the sectors were in the red. Aldar Properties dropped 1.1 percent, and Abu Dhabi Ports Co slipped by 0.9 percent.
AD Ports reported that it has signed a deal with AVESTO Group in Tajikistan to establish a joint venture to offer integrated logistics and freight-forwarding services throughout the country.
The index of the Dubai stock market was not much affected, as Emaar Properties fell by 1 percent and Mashreqbank climbed by 2 percent. Action Energy Co. in Kuwait surged up to 25 percent to 266 dinars per share during its debut on Boursa Kuwait, the Premier Market.
Therefore, the oilfield services provider sold 260 million shares, or 45.9 percent of its capital, at 212 fils a share, raising 55 million Kuwaiti dinars ($179.25 million). The pricing would suggest a post-money valuation of approximately 120 million dinars. The index of Kuwait was decreasing by 0.2 percent.
