Stock markets in the Gulf put in a mixed performance on Wednesday amid expectations of slowing economic growth and fears of a recession in the United States.
Saudi Arabia’s benchmark index was among the risers, adding 0.4% for a sixth session of gains, with Al Rajhi Bank closing 1.3% higher and Dr Sulaiman Al-Habib Medical Services up 1.7%.
U.S. Consumer confidence fell to a nine-month low in April, a survey showed on Tuesday, intensifying concerns of a potential recession.
Investors are worried that further potential interest rate hikes by inflation-fighting central banks could slow economic growth and dent energy demand in the United States, Britain and the European Union.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed’s policy moves closely, exposing the region to monetary tightening in the world’s largest economy.
Major Gulf markets mixed in early trade
In Abu Dhabi, the index rose 0.3%, with Fadi Reyad, Chief Market Analyst at CAPEX.com MENA, noting a positive trend was maintained as oil prices remained relatively stable.
“The market was led by rebounds in some of its largest stocks and could continue to see a positive performance with investors’ sentiment moving to the bright side after the end of Ramadan,” he said.
Dubai’s main share index fell 0.5%, weighed down by a 2.5% drop in blue-chip developer Emaar Properties.
The Qatari benchmark, which traded after a three session break, rose 1.4%.
Outside the Gulf, Egypt’s blue-chip index fell 0.4%, with top lender Commercial International Bank down more than 2%.
According to Reyad, the Egyptian bourse saw a more pronounced decline after failing to break above this year’s high.
“The market could come under pressure as international investors could accelerate their selling trend if global conditions continue to deteriorate, in particular, if concerns around U.S. banks’ health increase.”
====================================== SAUDI ARABIA rose 0.4% to 11,307 ABU DHABI up 0.3% to 9,676 DUBAI down 0.5% to 3,490 QATAR gained 1.4% to 10,073 EGYPT lost 0.4% to 17,452 BAHRAIN was up 0.4% to 1,895 OMAN eased 0.5% to 4,720 KUWAIT added 0.1% to 7,941 ======================================
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