Bourses in Mideast drop

Shares in the Middle East ended in the red on Wednesday following warnings of the worst global recession since the 1930s, underlining the economic damage done by the coronavirus outbreak.

The global economy is expected to shrink by 3.0% during 2020 in a stunning coronavirus-driven collapse of activity that will mark the steepest downturn since the Great Depression of the 1930s, the International Monetary Fund said on Tuesday.

Saudi Arabia's benchmark index dropped 0.9%, with oil behemoth Saudi Aramco losing 1.3% and Al Rajhi Bank closing 0.9% down.

The world's largest oil producer Aramco is in early talks with banks for a loan of about $10 billion to help finance its acquisition of a 70% stake in Saudi Basic Industries (SABIC), according to three banking sources. Shares of SABIC were down 0.8%.

Meanwhile, the kingdom has started marketing a three-part dollar bond sale on Wednesday, a document showed, as the world's biggest oil exporter seeks to replenish state coffers battered by low oil prices and expectations of lower output.

Shares in the United Arab Emirates, which has launched $70 billion-worth of capital and liquidity measures to support the economy, were amongst the top losers.

In Dubai, the index slid 2.2%. Emirates NBD Bank sank 4.7%, whereas developer Emaar Properties dropped 2.8%.

The Abu Dhabi index retreated 1.2%, pressured by a 2% fall in the country's largest lender First Abu Dhabi Bank. On Tuesday, the UAE tax authority said it was extending the tax period for excise tax payments due from businesses for one month.

Qatar's index lost 0.9%, with 17 of twenty stocks on the index declining including the Gulf's largest lender Qatar National Bank, which contracted 1.1%. Egypt's blue-chip index fell 1.1%. Commercial International Bank ended 2% lower, while tobacco monopoly Eastern Company eased 1.5%.