Stock markets in the Gulf ended lower on Monday, in line with global equities as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about global growth.
Dubai’s main share index retreated 2.7%, its biggest one-day fall in a month, dragged down by a 4.9% drop in blue-chip developer Emaar Properties.
The main index could see additional price corrections in the short term as expectations remained bearish, said Wael Makarem, senior market strategist at Exness.
In Abu Dhabi, the index lost 1.8%, with the United Arab Emirates’ largest lender First Abu Dhabi Bank falling 2.5%.
Most Gulf markets end mixed, Qatar rises
Among other stocks, Dana Gas tumbled 2.8% after the energy firm said that it was in active discussion with the Egyptian government to reach a deal on Block 6 North El Arish Concession.
The Qatari index closed 1.5% lower with almost all the stocks on the index in the red, including the Gulf’s biggest lender, Qatar National Bank, losing 2.1%.
According to Makarem, the market could see additional pressures if natural gas prices remain volatile.
“In this regard, the country is working on developing production capacity to benefit from current price levels and higher demand from Europe.”
Saudi Arabia’s benchmark index fell 2.2%, hit by a 2% decline in Al Rajhi Bank and a 3.7% retreat in Saudi National Bank.
Oil prices, a key catalyst for the Gulf’s financial markets, dropped almost $2 a barrel as a flare-up in COVID-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.
Outside the Gulf, Egypt’s blue-chip index was down 0.8%, with Madinet Nasr For Housing and Development sliding about 7%, to become the top loser on the index.
SAUDI ARABIA 2.2% to 12,053
ABU DHABI down 1.8% to 9,459
DUBAI lost 2.7% to 3,287
QATAR dropped 1.5% to 12,718
EGYPT lost 0.8% to 10,015
BAHRAIN declined 1% to 1,852
OMAN down 0.1% to 4,123
KUWAIT eased 0.4% to 8,225
Comments
Comments are closed for this article.