DUBAI: Most stock markets in the Gulf ended lower on Wednesday in line with global shares as signs that the economic outlook is weakening spurred caution.
MSCI’s world equity index pulled further away from Tuesday’s almost seven-week highs, while Asia trade was thinned by holidays in Hong Kong and China.
Weak US economic data this week has exacerbated recession worries, taking the edge off recent stock market gains.
Saudi Arabia’s benchmark index dropped 0.3%, hit by a 5.2% fall in Dr Sulaiman Al-Habib Medical Services, while Arabian Centres Co retreated 4.3% as the mall operator went ex-dividend.
In the previous two sessions, the Saudi index posted sharp gains after a surprise announcement by OPEC+ to further cut oil production.
The surprise cuts to the OPEC+ group’s output targets could push oil prices towards $100 a barrel, setting the scene for another clash with the West, which is grappling with higher interest rates to tame inflation, analysts and traders said on Monday.
The Saudi market is at some risk of price corrections after its recent strong increases as traders move to secure their gains, said Daniel Takieddine, CEO MENA at BDSwiss.
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