Mideast Stocks: Gulf markets close mixed on economic worries; Egypt gains

Mideast Stocks: Gulf markets close mixed on economic worries; Egypt gains

Most stock markets in the Gulf ended mixed on Thursday amid concerns around recession in the United States, with the Saudi index snapping six sessions of gains. Saudi Arabia's benchmark index dropped 0.3% with Al Rajhi Bank losing 1.6%. The bank reported profits that were lower than last quarter although higher than the same period a year ago. U.S. economic growth slowed more than expected in the first quarter, despite an increase in consumer spending, and activity is set to moderate further as the effects of higher interest rates spread. Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to monetary tightening in the world's largest economy. In Abu Dhabi, the index finished 0.8% higher. The Abu Dhabi bourse was driven by gains in the banking sector as positive earnings improved sentiment, hinting at a solid local economy, said Ahmed Negm, Head of Market Research MENA at XS.com. "The surge has countered the effects of declining oil prices. The main index could find some resistance if crude prices continue to retreat." Oil prices - a key catalyst