DUBAI: Major Gulf stock markets fell on Sunday on weaker oil prices and profit-taking, with sentiment further pressured by concerns over a global supply glut and escalating tension between the US and Venezuela following the seizure of a tanker.
Oil prices – a key driver for Gulf financial markets – settled lower on Friday, posting a 4 percent weekly decline as oversupply and hopes for a potential Russia-Ukraine peace deal outweighed worries over any impact from the US seizure of an oil tanker off Venezuela’s coast.
Saudi Arabia’s benchmark index fell for a second straight session, losing 1.2 percent, with all sectors in negative territory, led by industry, finance and communications. Al Rajhi Bank, the world’s largest Islamic lender, dropped 1.3 percent, while Saudi Basic Industries Corp retreated 1.2 percent.
Separately, Oman’s state energy group OQ is in talks with new potential partners for its planned petrochemical complex in Duqm after SABIC withdrew, Chief Executive Ashraf Al Mamari said.
“The market is under pressure from a combination of weaker oil expectations and liquidity dynamics,” Joseph Dahrieh, managing principal at brokerage firm Tickmill, said in a note.
The Qatari benchmark index snapped four consecutive sessions of gains to end 0.4 percent lower, with all its constituents in the red. Qatar National Bank, the region’s largest lender, slipped 0.8 percent, and Industries Qatar fell 0.8 percent.