DUBAI: Dubai led declines among stock markets in the Gulf on Monday, as sentiment was weighed by a fall in global equities and oil prices. Global shares skidded as investors fretted about the spillover risk to the global economy from property group China Evergrande's troubles, while eyeing a week packed with global central bank meetings.
Dubai's main share index retreated 1.2%, as most of the stocks on the index finished lower, including its top lender Emirates NBD, which lost 1.4%. The fall in Dubai stocks could prove temporary as strong local fundamentals continue to improve. Thanks to sanitary improvements, the local tourism industry is outperforming its equivalent in other countries, said Wael Makarem, senior market strategist Exness.
In Abu Dhabi, the index dropped 0.8%, weighed by country's largest lender First Abu Dhabi Bank and telecoms firm Etisalat, which fell 1% each. Saudi Arabia's benchmark index fell 0.6%, with Al Rajhi Bank losing 0.6% and petrochemical maker Saudi Basic Industries Corp falling 1.3%.
A stronger dollar kept oil under pressure, with crude also taking a hit from energy companies in the US Gulf of Mexico resuming production after back-to-back hurricanes in the region shut output. The recovery in US crude production capacity and doubts about demand levels in Asia are eroding the support base for the market. The main index has declined below its trend line and could see some corrections, Makarem said.
The Qatari index lost 0.4%, hit by a 1.1% fall in Qatar Islamic Bank. Outside the Gulf, Egypt's blue-chip index slid 1.6%, extending losses to a third consecutive session, as almost all the stocks on the index declined, with Commercial International Bank Egypt leading losses.
SAUDI ARABIA lost 0.6% to 11,328
ABU DHABI dropped 0.8% to 7,746
DUBAI down 1.2% to 2,872
QATAR fell 0.4% to 11,178
EGYPT lost 1.6% to 10,711
BAHRAIN added 0.2% to 1,690
OMAN rose 0.1% to 3,945
KUWAIT was flat at 7,509.
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