DUBAI: Most major stock markets in the Gulf ended lower on Tuesday, as investors worried over surging cases of the Omicron coronavirus variant.
As Omicron remains the biggest cause for investor caution, economic growth forecasts are being reviewed lower, Farah Mourad, senior market analyst of XTB MENA, said.
In Abu Dhabi, the index dropped 1.2%, dragged down by a 5% fall in telecoms firm Etisalat and a 0.5% decrease in the country’s largest lender First Abu Dhabi Bank .
Dubai’s main share index edged down 0.1%, hit by a 3.2% fall in Emirates NBD Bank.
The Central Bank of the United Arab Emirates said on Monday it would use new criteria to supervise banks’ exposure to real estate, a crucial contributor the Gulf state’s economy that has been sluggish for years. The regulator will give banks one year to enhance their practices to meet the requirements, starting from Dec. 30.
The Qatari index eased 0.1%, with sharia-compliant lender Masraf Al Rayan losing 0.5%.
Separately, Qatar plans to invest at least $10 billion in US ports and has approached international banks for financing, three finance sources said.
Saudi Arabia’s benchmark index gained 0.8%, with Al Rajhi Bank closing 1.6% higher and Saudi National Bank , the Gulf’s largest lender, rising 1%.
Oil prices rebounded after a sharp fall in the previous session, although the market was still cautious because of the rapid spread of Omicron.
Compliance by the OPEC+ group of producers with oil production cuts rose to 117% in November from 116% a month earlier, two sources from the group told Reuters, indicating output levels remain well below agreed targets.
Outside the Gulf, Egypt’s blue-chip index added 0.4%, with Talaat Mostafa Group Holding gaining 2%.
SAUDI ARABIA added 0.8% to 11,261
ABU DHABI dropped 1.2% to 8,459
DUBAI fell 0.1% to 3,152
QATAR eased 0.1% to 10,118
EGYPT rose 0.4% to 11,525
BAHRAIN lost 0.1% to 1,770
OMAN rose 0.6% to 4,075
KUWAIT added 0.9% to 7,590.
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