Most stock markets in the Gulf ended lower on Tuesday as traders assessed lower oil prices and concerns over the US government’s debt-ceiling negotiations.
Saudi Arabia’s benchmark index dropped 0.2%, hit by a 2.1% decline in oil giant Saudi Aramco.
Oil futures steadied as support from a higher forecast for global demand from the International Energy Agency (IEA) was countered by weaker-than-expected Chinese economic data.
In another bullish factor, the US Department of Energy on Monday said it would buy 3 million barrels of crude oil for the Strategic Petroleum Reserve for delivery in August.
Most Gulf markets turn south as risk appetite wanes
Dubai’s main share index retreated 0.5%, falling for a fourth consecutive session, weighed down by a 3.2% slide in Tecom Group.
The Dubai stock market extended its losses following some mitigated company earnings today and as global sentiment tilts toward caution, said Ahmed Negm, Head of Market Research MENA at XS.com.
“The main index veered away from its uptrend direction and could be exposed to more price corrections if traders continue to sell.”
In Abu Dhabi, the index bucked the trend to close 0.1% higher.
The Qatari benchmark eased 0.1%.
US President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Monday prepared for critical debt-ceiling talks, with a little more than two weeks to go before the US government could run short of money to pay its bills.
A first-ever US default would plunge the country into recession and inject chaos into global financial markets, economists said, and the standoff has started to worry investors and consumers.
Outside the Gulf, Egypt’s blue-chip index finished 0.6% higher, with Abu Qir Fertilizers losing 2.5%.
According to Negm, the Egyptian bourse continued to decline as risk appetite dries up with international investors monitoring the developments in the US The deteriorating sentiment globally could fuel the current selling trend among global traders.
SAUDI ARABIA fell 0.2% to 11,206
ABU DHABI up 0.1% to 9,476
DUBAI down 0.5% to 3,509
QATAR eased 0.1% to 10,469
EGYPT lost 0.6% to 17,034
BAHRAIN was flat at 1,938
OMAN down 0.1% to 4,710
KUWAIT declined 0.5% to 7,500
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