Most Gulf bourses decline, tracking oil prices; Dubai gains

Most major stock markets in the Gulf fell in early trade on Tuesday, in tandem with oil prices and Asian peers as investors were cautious ahead of major central bank meetings this week, while Dubai bucked the trend.

Investors expect the US Federal Reserve to raise interest rates by 25 basis points on Wednesday, followed the day after by half-point increases by the Bank of England and European Central Bank.

Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror US monetary policy changes.

The Qatari Stock index (.QSI) declined 1%, pressured by losses in banking stocks, with the Gulf’s largest lender Qatar National Bank (QNBK.QA) falling 1.9%, while Commercial Bank (COMB.QA) dropped 2.3%.

Abu Dhabi’s benchmark index (.FTFADGI) retreated 0.9%, as Conglomerate International Holding Company (IHC.AD) moved down 2.1% on plans to invest 1.4 billion dirhams ($381.2 million) in Adani Enterprises’ (ADEL.NS) follow-on stock offering.

Adani Enterprises is the flagship company of the Adani Group, controlled by Asia’s richest man, Gautam Adani. Last week, short-seller Hindenburg Research accused the group of improper use of offshore tax havens and flagged concerns about high debt, eroding $65 billion of the group’s combined market value. Adani has called the report baseless.