Major stock markets in the Gulf fell in early trade on Monday, dragged lower by falling oil prices, while market participants awaited a US Federal Reserve meeting to see if the central bank takes a less aggressive approach on rate hikes.
Crude oil prices - a key catalyst for the Gulf’s financial markets, fell more than $1 following weaker-than-expected factory activity data out of China and on concerns its widening COVID-19 curbs will curtail demand.
Factory activity in China, the world’s largest crude importer, fell unexpectedly in October, an official survey showed, weighed down by softening global demand and strict COVID-19 restrictions that hit production.
Saudi Arabia’s benchmark stock index dropped 0.3%, weighed down by a 2.9% slide in Dr Sulaiman Al-Habib Medical Services and a 1.2% decline in Retal Urban Development Co. Saudi Tadawul Group, the bourse’s owner and operator, was down 0.9% after reporting a fall in quarterly earnings.
Savola Group rose more than 2% on upbeat third-quarter earnings.
In Abu Dhabi, the benchmark stock index edged 0.1% higher, helped by a 0.5% increase in First Abu Dhabi Bank , the country’s biggest lender.
Al Waha Capital surged 8.1% after the company reported a jump in third-quarter net profit.
Most Gulf markets retreat on falling oil prices
Separately, the United Arab Emirates aims to increase the share of clean energy projects to 50% of its overall energy mix by 2050, state news agency WAM cited its energy minister as saying on Sunday.
Dubai’s main share index fell 0.2%, hit by a 1.1% fall in top lender Emirates NBD and a 0.8% decrease in utility firm Dubai Electricity and Water.
Asian stock markets wobbled higher as hopes waned that the US Federal Reserve might take a less aggressive approach on rate hikes.
Most Gulf currencies are pegged to the dollar, and Qatar, Saudi Arabia and the United Arab Emirates usually copy any monetary policy change in the United States.
The Qatari index dropped 0.3%, with Commercial Bank retreating 2.3% and petrochemical maker Industries Qatar losing 0.8%.
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