Oil supports most Gulf markets; Saudi falls on economic worries

Most stock markets in the Gulf edged higher on Monday supported by gains in oil prices, while the Saudi index snapped three sessions of gain as recession fears weighed on investor sentiment.

Oil - a key catalyst for the Gulf’s financial markets – rose after tumbling by more than $2 a barrel in the previous session as optimism over the Chinese economy outweighed concern over a global recession.

In Abu Dhabi, the index added 0.3%, extending gains for a third session, led by a 1.5% rise in the country’s biggest lender First Abu Dhabi Bank.

Dubai’s main share index finished 0.3% higher, with blue-chip developer Emaar Properties climbing 1.9%.

The United Arab Emirates’ central bank expects real gross domestic product growth of 7.6% this year, an upward revision of more than a percentage point, while lowering expectations for growth next year, state news agency WAM said on Monday.

Qatar’s benchmark index closed 0.1% higher.

The Qatari market movements were limited in the face of the volatility in natural gas prices, said Daniel Takieddine, CEO MENA at BDSwiss.

Gulf bourses end mixed on Fed’s hawkishness, volatile oil

“The latter could react strongly to the European initiative to put a lower price cap in place.”

Saudi Arabia’s benchmark index fell 0.6%, ending three sessions of gains, hit by a 3% fall in Dr Sulaiman Al-Habib Medical Services.

The U.S. Federal Reserve and European Central Bank raised interest rates last week and promised more.

Most Gulf Cooperation Council countries, including Saudi Arabia, have their currencies pegged to the U.S. dollar and follow the Fed’s policy moves closely, directly exposing the region to monetary tightening in the world’s largest economy.

Outside the Gulf, Egypt’s blue-chip index declined 0.7%, falling for a third consecutive session on profit-taking.

Bahrain was closed for a public holiday

=======================================
 SAUDI ARABIA    fell 0.6% to 10,186
 ABU DHABI       up 0.3% to 10,358
 DUBAI           added 0.3% to 3,340
 QATAR           firmed 0.1% to 10,987
 EGYPT           lost 0.7% to 14,739
 OMAN            rose 0.2% to 4,803
 KUWAIT          was up 0.3% to 8,111
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