Mideast Stocks: Most Gulf bourses in red after Fed rate hike

Mideast Stocks: Most Gulf bourses in red after Fed rate hike

Most major stock markets in the Gulf were subdued in early trade on Thursday, tracking global shares lower on the U.S. Federal Reserve rate hike and signs of stress at another regional bank in the world's largest economy.

The Fed raised interest rates by a quarter of a percentage point and signalled it may pause further increases, giving officials time to assess the fallout from the recent bank failures, the political standoff over the U.S. debt ceiling, and monitor inflation.

At a press conference, Fed Chair Jerome Powell said inflation remains the chief concern, and that it is therefore too soon to say with certainty that the rate-hike cycle is over.

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 a direct impact from monetary tightening in the world's largest economy.

Saudi benchmark index dropped 0.3%, with petrochemical maker Saudi Basic Industries Corp falling as much as 1.9% after reporting a sharp decline in first-quarter net profit.

Among other losers, Saudi British Bank retreated more than 3% as the lender traded ex-dividend.

Separately, government-led reforms and the growth of private investment in