Major stock markets in the Gulf fell in early trade on Thursday, tracking oil prices and Asian shares lower, with the Saudi index on course to post its first weekly loss in five weeks.
Prices of oil - a key catalyst for the Gulf’s financial markets - were little changed after a two-day decline, including a sharp drop on Wednesday, as a US government credit downgrade weighed on sentiment, though concerns around supply tightness provided some support.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4%, after a 2.3% drop a day earlier as rating agency Fitch cut the US government’s credit rating.
Saudi Arabia’s benchmark index fell 0.2%, on course to extend losses for a fifth session after it hit a nine-month high on July 26, weighed down by a 3.6% decline in Saudi Awwal Bank.
Non-oil business activity in Saudi Arabia eased in July, after output surged to multi-year highs the previous month, a survey showed on Thursday, as new order growth slowed.
On the flip side, Saudi Steel Pipes Co surged about 10%, becoming the top gainer on the index, after it recorded 645% jump in second-quarter net profit.
Saudi bourse extends losses on profit taking; Qatar falls
In Abu Dhabi, the index eased 0.2%. Dubai’s main share index declined 0.8%, ending its fourth positive session, with blue-chip developer Emaar Properties losing 1.3%, while top lender Emirates NBD Bank was down 1.5%.
Non-oil business activity in the United Arab Emirates eased in July as new orders slowed from a four-year high the previous month, a survey showed on Thursday.
The Qatari index dropped 1.5%, as almost all its constituent stocks were trading in the negative territory.
Sharia lender Qatar Islamic bank fell 4.6% and Qatar National Bank, Gulf’s largest lender, gave up 1.4%.
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