DUBAI: Most stock markets in the Gulf ended lower on Monday, pressured by falling oil prices and investor caution ahead of developments in US-China trade relations.
Oil prices - a catalyst for the Gulf’s financial markets - fell more than 1% on Monday after OPEC+ decided over the weekend to further speed up oil output hikes, spurring concerns about more supply coming into a market clouded by an uncertain demand outlook.
The group could fully unwind its voluntary cuts by the end of October if members do not improve compliance with their production quotas, OPEC+ sources told Reuters.
The Qatari index dropped 0.4%, hit by a 0.9% fall in Qatar Islamic Bank and a 1% decrease in petrochemical maker Industries Qatar.
In Abu Dhabi, the index eased 0.1%.
Saudi Arabia’s benchmark index reversed early losses to close 0.1% higher, helped by a 6.5% rise in Saudi Arabian Mining Company.
Dubai’s main share index advanced 1%, led by a 3.1% jump in top lender Emirates NBD and a 6.9% increase in Commercial Bank of Dubai.
There is potential for the Dubai market to continue its positive trajectory, bolstered by strong earnings and robust economic fundamentals, highlighted by steady growth in the non-oil private sector during April and employment rising at its fastest pace in eleven months, said Joseph Dahrieh, Managing Principal at Tickmill.
Trump on Sunday said the US was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal.
Outside the Gulf, Egypt’s blue-chip index dropped 0.4%, weighed down by a 2.7% slide in Egypt Aluminum Company , despite reporting a rise in nine-month profit.
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