Most stock markets in the Gulf were subdued on Wednesday as recession fears capped risk appetite, although the losses were limited by gains in oil prices.

Dubai’s main share index dropped 0.3%, ending a five-day winning streak, hit by a 1.7% fall in utility firm Dubai Electricity and Water Authority.

The Dubai bourse declined after a small rebound during the last few days as traders moved to secure their gains, said Abdelhadi Laabi, Chief Sales and Marketing Officer at Emporium Capital.

“Overall, the main index continues to trade sideways mostly with some volatility.”

Saudi Arabia’s benchmark index ended flat.

Oil prices - a key catalyst for the Gulf’s financial markets - rose by more than 2% after data suggested a larger than expected draw in U.S. crude stockpiles, but gains were capped by growing concerns over demand in China and a snow storm that is expected to hit U.S. travel.

In Qatar, the equities, however, added 0.3%, helped by a 0.9% rise in Qatar National Bank.

Major Gulf markets mixed in early trade

The country, among the world’s top exporters of liquefied natural gas, approved its 2023 fiscal year budget on Monday with revenue estimated to increase 16.3% next year, its finance minister said, thanks to rising average oil prices.

The budget was based on an oil-price assumption of $65 per barrel, compared to 2022’s assumption of $55.

According to Laabi, the Qatari market was slightly positive following a rebound in natural gas prices.

Outside the Gulf, Egypt’s blue-chip index added 0.1%, helped by a 2% gain in top lender Commercial International Bank.

The Central Bank of Egypt (CBE) will raise its overnight interest rates by 200 basis points on Thursday as it tries to quell soaring inflation after a sharp devaluation of the currency, a Reuters poll predicted on Tuesday.

======================================== SAUDI ARABIA    closed flat at 10,277 ABU DHABI       was flat at 10,340 DUBAI           down 0.3% to 3,340 QATAR           gained 0.3% to 10,998 EGYPT           added 0.1% to 14,542 BAHRAIN         finished flat at 1,857 OMAN            lost 0.4% to 4,797 KUWAIT          down 0.3% to 8,000========================================