Mideast Stocks: Most Gulf markets drop as cenbanks toe hawkish Fed line

Mideast Stocks: Most Gulf markets drop as cenbanks toe hawkish Fed line

Most stock markets in the Gulf ended lower on Thursday, as the U.S. Federal Reserve signalled it was not close to a dovish pivot, prompting hawkish messages from several emerging market central banks.

Most Gulf states said on Wednesday they would increase key interest rates after the Federal Reserve raised its policy rate by three-quarters of a percentage point for a fourth straight time.

Saudi Arabia and the United Arab Emirates, the region's two largest economies, both increased rates by 75 basis points.

The Saudi central bank, also known as SAMA, lifted its repo and reverse repo rates to 4.5% and 4%, respectively.

The UAE raised its base rate to 3.9%, effective Thursday. Saudi Arabia's benchmark index dropped 0.8%, hit by a 1.6% fall in Al Rajhi Bank and a 2.1% drop in Riyad Bank.

The index fell 2.3% for the week, its third weekly fall in four. However, Saudi National Bank (SNB) added 0.9%, extending gains from the previous session.

On Wednesday, SNB's chairman said the bank's investment in Credit Suisse is tactical rather than strategic, adding that the Saudi lender expects to hold its stake in the Swiss bank for at least two years.

The kingdom's largest bank said last week that it would invest