Qatar index hits 7-month low as Gulf bourses dip; Egypt gains

Major stock markets in the Gulf fell on Sunday, led by the Qatar index amid receding expectations for U.S. interest rate cuts following resilient economic data and hawkish comments from the Fed's last policy meeting.

The Qatari benchmark index GNRI was down for a third day, falling 1.7% to 9,396, its lowest level in nearly seven months, with all constituents posting losses.

Industries Qatar IQCD dropped 1.3% and Qatar National Bank QNBK, the region's largest lender, slipped 2.2%.

Saudi Arabia's benchmark index TASI declined 1.2% to close at 11,851, its lowest in about four months with almost all sectors in the red.

Al Rajhi Bank 1120, the world's largest Islamic lender, slipped 1.4% and Saudi Aramco 2222 lost 1.7%. Saudi Arabia, the oil major's owner, is planning a multi-billion-dollar share sale in Aramco as soon as June.

However, ADES Holding 22382 gained 1.8% after the oil and gas driller was awarded a 2.42 billion riyals ($645 million) contract by Kuwait Oil Co.

Robust economic data from the U.S. on Thursday showed an acceleration in business activity in May, and hawkish U.S. Federal Reserve minutes released on Wednesday led traders to dial back their bets on rate cuts this year.

Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt's blue-chip index EGX30 gained 1.2%, aided by gains in most sectors with Eastern Company EAST climbing 2.9% and Madinet Masr MASR rising 4.3%.

The developer posted a 286% surge in its first-quarter net profit.

Meanwhile, Egypt's central bank kept its overnight interest rates steady on Thursday, saying that while economic growth had slowed, rising non-food inflation had offset a steady decline in food inflation.

($1 = 3.7505 riyals)