Most stock markets in the Gulf ended lower on Thursday amid concerns around the U.S. government’s debt-ceiling negotiations, although the Saudi index bucked the trend to close higher.
Dubai’s main share index dropped 0.3%, with toll-operator Salik Company losing 1.3%.
The Dubai stock market was under pressure again after a strong rebound yesterday. The market could see traders moving to more caution while U.S. issues continue to weigh on expectations, said Farah Mourad, Senior Market Analyst of XTB MENA.
“As a result, the main index could see some price corrections if sentiment deteriorates further.”
Saudi Arabia’s benchmark index rose 0.6%, extending gains from the previous session, with the country’s biggest lender Saudi National Bank gaining 2.7%.
Most Gulf markets fall on lower oil prices; Saudi gains
The kingdom’s crude oil exports in March rose to 7.52 million barrels per day (bpd) from 7.455 million bpd in February, the International Energy Forum (IEF) said on Thursday, citing data from the Joint Organisations Data Initiative (JODI).
In Abu Dhabi, the index fell 0.2%.
Oil prices were broadly stable as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging in the previous session on optimism over U.S. fuel demand.
President Joe Biden and senior U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal to raise the federal government’s $31.4 trillion debt ceiling and avoid an economically catastrophic default.
A debt agreement needs to be reached and passed by both chambers of Congress before the government runs out of money to pay its bills, which could be as soon as June 1.
The Qatari benchmark finished 0.4% lower, a day after advancing 2% following media reports that the Gulf state was planning to boost the stock market to attract foreigners.
Outside the Gulf, Egypt’s blue-chip index declined 0.5%, dragged down by a 2.7% decline in top lender Commercial International Bank.
Egypt’s central bank is forecast to leave its overnight interest rates unchanged on Thursday after inflation eased slightly in April and following a 200 basis-point rate hike in March, a Reuters poll showed on Monday.
======================================= SAUDI ARABIA rose 0.6% to 11,344 ABU DHABI fell 0.2% to 9,509 DUBAI down 0.3% to 3,556 QATAR eased 0.4% to 10,644 EGYPT lost 0.5% to 16,746 BAHRAIN was up 0.1% to 1,943 OMAN was flat at 4,697 KUWAIT gained 1.1% to 7,499 =======================================
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