Major Gulf stock markets fell in early trade on Tuesday, extending losses from the previous session as oil prices slid.
Crude prices - a key catalyst for the region’s financial markets - dropped as rising COVID-19 cases in China sparked fears of lower fuel consumption from the world’s top crude oil importer and after OPEC cut its 2022 global demand forecast.
The OPEC forecast cut came after the International Monetary Fund said on Sunday that the global economic outlook has become gloomier than projected last month, citing a steady worsening in recent purchasing manager surveys.
Saudi Arabia’s benchmark index fell 0.6%, hit by a 1.4% drop in Retal Urban Development Co and a 1.2% fall in oil giant Saudi Aramco.
South Korea’s S-Oil Corp, in which the largest shareholder is Aramco, is considering an investment of up to 8 trillion won ($6.1 billion) in new petrochemical production in the country, the Korea Economic Daily reported.
Dubai’s main share index dropped 1%, weighed down by a 2.5% slide in blue-chip developer Emaar Properties despite it having reported a forecast-beating 46% rise in third quarter net profit the previous day.
Most Gulf bourses fall after Fed warning
Emirates REIT has again proposed to its bondholders a refinancing of a $400 million sukuk due next month, and an ad hoc group of investors who last year opposed a proposed exchange offer said it would support it.
In Abu Dhabi, the index fell 0.8%, hit by a 1.5% drop in the country’s biggest lender First Abu Dhabi Bank.
Diversified investment firm Aram Group also plunged 9.4% after it turned to quarterly losses.
The Qatari index retreated 1.2%, as all stocks bar one sat in negative territory, including Qatar Islamic Bank , which was down 1.1%.
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