Weak oil, fears of prolonged lockdowns weigh on ME stocks

Most bourses in the Middle East fell on Monday, weakened by a combination of lower oil prices and intensified fears that the global coronavirus shutdown could last for months.
Brent crude, the international benchmark for oil prices, was down $1.92, or 7.7%, at $23.01 by 1027 GMT, after earlier dropping to $22.58, the lowest since November 2002.
In Abu Dhabi, the index sank 3.5%, with its top lender First Abu Dhabi Bank declining 5% and telecoms firm Etisalat was down 3.1%. Dubai's main share index eased 2.3%, led by a 4% fall in sharia Compliant lender Dubai Islamic Bank and a 4.1% drop in Emaar Properties.
The United Arab Emirates on Saturday extended to April 5 a nightly curfew to combat the spread of coronavirus as neighbouring Qatar reported its first death from the disease. The Qatari index was down 1.8%. Qatar Islamic Bank fell 3.3%, while Qatar National Bank retreated 1.9%.
The Gulf state on Saturday reported its first virus-related death, a Bangladeshi resident. The majority of the 634 cases are among migrant labourers in Qatar, where foreigners make up most of the work force.
Saudi Arabia's benchmark index edged down 0.1%, hurt by a 2.4% fall in Al Rajhi Bank and a 1.5% slide in National Commercial Bank. The kingdom halted entry and exit into Jeddah governorate on Sunday, expanding lockdown rules as it reported four new deaths from a coronavirus outbreak that continues to spread in the region despite drastic measures to contain it.
The six-nation Gulf Cooperation Council have confirmed a total of nearly 3,500 infections, many related to travel to Iran, and 16 deaths from the virus. Outside the Gulf, Egypt's blue-chip index ended 2.5% lower. Commercial International Bank decreased 3% and Talaat Mostafa Holding plunged 5.7%.
Egyptian banks have been instructed to apply temporary limits on daily withdrawals and deposits in a move seemingly designed to control inflation and hoarding during the coronavirus' spread.

Copyright Reuters, 2020

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