Saudi shares lead broader Gulf losses, Egypt weakens

DUBAI: The markets in the United Arab Emirates (UAE) fell on Wednesday after solid gains in the previous two days, while Saudi Arabia extended losses to a fourth straight session as it imposed further restrictions to curb the spread of the coronavirus.

Dubai, which firmed more than 1% each in the past two sessions, weakened 0.4%, dragged mainly by financial stocks. The Dubai Stock Exchange operator Dubai Financial Market slipped nearly 5%, while the emirate’s biggest bank Emirates NBD declined 1.3%.

A second wave of coronavirus infections threatens to upend a tourism boom in Dubai that provided salve to its battered economy.

Dubai, one of the few destinations open to international travellers since July, has yet to impose the toughest restrictions after record daily infections in the UAE, in the hope that vaccinations will spare a repeat of last year’s lockdown.

The Abu Dhabi index retreated 0.4%, hurt by a nearly 1% fall in the UAE’s largest lender First Abu Dhabi Bank , while the National Bank of Ras Al-Khaimah lost about 4%.

Mild growth in the UAE’s non-oil private sector was unchanged in January as business activity grew solidly and employment increased for the first time in over a year, although sales growth weakened, a survey showed.

Saudi Arabia’s benchmark index extended its losing streak to a fourth session, with a 0.9% decline.

Saudi Arabia on Tuesday suspended entry to the kingdom from 20 countries, with the exception of diplomats, Saudi citizens, medical practitioners and their families, to help curb the spread of the coronavirus.

The kingdom’s biggest lender National Commercial Bank declined 2.1%, while another lneder Banque Saudi Fransi dropped 3.1%.

However, Al Rajhi Bank finished in the positive territory, gaining 0.3% after it reported a higher full-year profit.

Elsewhere, in Qatar, the index declined 0.4%, with petrochemical company Industries Qatar and the Gulf’s biggest lender Qatar National Bank falling 1.8% and 0.8%, respectively.

Outside the Gulf, Egypt’s index shed 0.2%. Abu Qir Fertilizers and Chemical Industries Co was the worst performer on the benchmark, dropping 2.2%.