DUBAI: Major Gulf stock markets gave up early gains to close down on Monday, as investor optimism over a US rate cut and higher oil prices gave way to concerns about excess crude supplies.
Saudi Arabia’s benchmark index fell 0.9 percent to its lowest level in nearly two years, pressured by broad-based sectoral losses.
Al Rajhi Bank, the world’s largest Islamic lender, and oil giant Saudi Aramco both fell 0.9 percent. Elsewhere, Theeb Rent a Car dropped more than 2 percent as its shares traded ex-dividend.
Dubai’s main share index also retreated 0.9 percent, with nearly all sectors closing in negative territory. Emirates NBD led the losses, falling almost 3 percent.
Emirates Integrated Telecommunications Company, better known as du, declined 3 percent after it launched a secondary share sale as one of its main investors, a Mubadala subsidiary, trims its holding. The transaction could generate about AED 3.39 billion (USD923 million), with du receiving no proceeds from the sale.
Abu Dhabi’s index edged down 0.7 percent.
Abu Dhabi Commercial Bank tumbled 7.5 percent - its steepest fall in more than three years - after the UAE’s third-largest bank by assets proposed a rights issue priced 30 percent below the last close, aiming to raise 6.1 billion dirhams (USD1.66 billion). Qatar stock index declined 0.6 percent, hit by a 0.7 percent fall in Qatar Islamic Bank.
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