By Ateeq Shariff
March 14 (Reuters) - Most stock markets in the Gulf
ended lower on Tuesday as fears of contagion risks from the
failure of U.S.-based Silicon Valley Bank (SVB) dragged on
financial markets.
Most Gulf currencies are pegged to the dollar and Qatar,
Saudi Arabia and the United Arab Emirates usually mirror any
monetary policy change in the United States.
Saudi Arabia's benchmark index finished 1% lower,
weighed down by a 0.8% fall in Retail Urban Development Co and a 1.1% decrease in Al Rajhi Bank .
Separately, Boeing Co is expected to sell nearly 80
787 Dreamliner airplanes to two Saudi Arabian airlines, Reuters
reported on Monday, citing a source briefed on the matter.
Elsewhere, Saudi Basic Industries Corp slipped
2.7% as the petrochemical maker went ex-dividend.
Dubai's main share index declined 1.5%, extending
losses for a fifth session, with sharia-compliant lender Dubai
Islamic Bank sliding 3.6%.
In Abu Dhabi, the index tumbled 1.8%, driven down
by a 2.7% drop in the United Arab Emirates' biggest lender First
Abu Dhabi Bank .
ADNOC Gas eased 0.4%, a day after surging more
than 18% over its listing price in its market debut.
ADNOC Gas' shares closed at 2.81 dirhams ($0.7651) apiece,
versus its initial public offering price of 2.37 dirhams.
The uncertainties in the U.S. banking sector and the
subsequent oil declines have fuelled price corrections in the
Abu Dhabi stock market, said Farah Mourad, Senior Market Analyst
of XTB MENA.
"Otherwise, the market could continue to benefit from strong
local fundamentals and investors' interest in local IPOs when
the global turmoil dies down."
The Qatari index concluded 1.9% lower.
Oil prices - a key catalyst for the Gulf's financial markets
- dropped more than $2 a barrel, extending the previous day's
slide, as the collapse of Silicon Valley Bank rattled equities
markets and sparked fear about a fresh financial crisis. Outside the Gulf, Egypt's blue-chip index fell
0.5%, with top lender Commercial International Bank losing 2%.
SAUDI ARABIA dropped 1% to 10,207
ABU DHABI fell 1.8% to 9,587
DUBAI declined 1.5% to 3,304
QATAR lost 1.9% to 10,216
EGYPT down 0.5% to 15,362
BAHRAIN eased 0.2% to 1,906
OMAN rose 0.7% to 4,929
KUWAIT slid 2.9% to 7,827
(Reporting by Ateeq Shariff in Bengaluru; Editing by Krishna
Chandra Eluri)
