Most stock markets in the Gulf ended lower on Tuesday as oil prices fell on demand concerns, with the Qatari index leading declines in the region.
Crude prices, a key catalyst for the Gulf’s financial markets, fell by more than $1 a barrel as rising COVID-19 cases in China renewed fears of lower fuel consumption from the world’s top crude importer.
Brent crude futures fell $1.07, or 1.15%, to $92.07 a barrel by 1005 GMT after settling 3% lower on Monday.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) cut its 2022 global oil demand growth forecast for a fifth time since April, citing mounting economic challenges including high inflation and rising interest rates.
In Qatar, the index declined 1.4%, as almost all the stocks on the index including petrochemicals maker Industries Qatar were in negative territory.
Gulf markets saw negative performance overall due to uncertainties in energy markets, as well as a reaction to the strong price rebounds recorded lately, Fadi Reyad, chief market analyst at CAPEX.com, said.
Most Gulf bourses fall after Fed warning
Saudi Arabia’s benchmark index dropped 0.9%, weighed down by a 1.4% fall in Retal Urban Development Co and a 1.8% decrease in the shares of oil behemoth Saudi Aramco.
South Korea’s S-Oil Corp, whose largest shareholder is Aramco, is considering an investment of up to 8 trillion won ($6.1 billion) in new petrochemical production in the country, the Korea Economic Daily reported.
Dubai’s main share index lost 0.6%, with blue-chip developer Emaar Properties falling 1.7%.
However, Emirates Central Cooling Systems Corp rose as much as 9% to 1.45 dirhams, before settling at 1.36 dirhams in its debut trade from offer price of 1.33 dirhams.
In Abu Dhabi, shares dropped 0.9%, with the country’s biggest lender First Abu Dhabi Bank falling 2%.
Outside the Gulf, Egypt’s blue-chip index was flat.
====================================== SAUDI ARABIA fell 0.9% to 11,097 ABU DHABI lost 0.9% to 10,528 DUBAI down 0.6% to 3,374 QATAR slid 1.4% to 12,408 EGYPT was flat at 12,137 BAHRAIN was flat at 1,866 OMAN down 0.4% to 4,441 KUWAIT added 0.1% to 8,586 ======================================
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