Most stock markets in the Gulf ended lower on Wednesday, following a droopy economic forecast about the region, with the Dubai index snapping eight sessions of gains.
Economic growth in five countries in the six-member Gulf Cooperation Council (GCC) is forecast to be even weaker than expected three months earlier on lower prices of oil, the region’s main export, according to a Reuters poll of economists.
Only Bahrain’s growth rate was upgraded to 3.0% from 2.7% in the previous poll. Average growth across the six GCC economies is forecast to be 1.5% this year, slightly more than half the 2.8% forecast in April.
Most Gulf bourses gain on dovish Fed bets; Saudi eases
Saudi Arabia’s benchmark index eased 0.1%, weighed down by a 1.1% fall in Riyad Bank and a 1.9% decrease in Banque Saudi Fransi.
Dubai’s main share index, which was trading at 8-year high, declined 0.9%.
Blue-chip developer Emaar Properties retreated 1.6%, while Emirates Central Cooling Systems finished 2.1% lower.
The Dubai bourse saw price corrections with traders moving to secure their gains after the main index recorded strong performances and new highs for the year, said George Pavel, general manager at Capex.com Middle East.
“In this regard, traders could monitor US company earnings while regional banks could be the centre of attention.”
In Abu Dhabi, the index lost 0.3%.
Global oil benchmark Brent hovered above $80, buoyed by China’s pledge to reinvigorate economic growth and expectations that the US Federal Reserve would stop raising interest rates soon.
The Qatari index bucked the trend to close 0.7% higher, as most of its constituents were in the positive territory including the Gulf’s biggest lender Qatar National Bank, which was up 1.8%.
Outside the Gulf, Egypt’s blue-chip index declined 0.2%, with tobacco monopoly Eastern Co losing 1.1%.
SAUDI ARABIA eased 0.1% to 11,753
ABU DHABI fell 0.3% to 9,665
DUBAI down 0.9% to 3,988
QATAR gained 0.7% to 10,379
EGYPT lost 0.2% to 17,579
BAHRAIN was up 0.3% to 1,986
OMAN down 0.1% to 4,805
KUWAIT added 0.5% to 8,161
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