off-the-wire

MIDEAST STOCKS-Most Gulf markets turn south as risk appetite wanes

Kitco Media
By Reuters
Published:
Updated:
Reuters
By Ateeq Shariff May 15 (Reuters) - Most stock markets in the Gulf ended lower on Monday as risk appetite among investors faded, while global issues and energy uncertainty continued to weigh on sentiment. Prices of oil — which fuels the economy in the Gulf region — were steady as bullish sentiment about tightening supplies from OPEC+ cuts and a resumption in U.S. buying for reserves outweighed concerns about fuel demand in the top global oil consumers, the United States and China. Saudi Arabia's benchmark index dropped 1%, hit by a 1.8% fall in oil giant Saudi Aramco .


The kingdom's annual inflation rate was 2.7% in April, unchanged from the previous month, driven mostly by housing rental costs, according to government data released on Monday. The Qatari benchmark closed 1.8% lower, its biggest fall since mid-March, as most of its constituents were in the negative territory. The Qatari stock market followed other markets in the region to the downside. The main index saw traders securing their gains after the market's latest rebound, but could find some support as natural gas prices could begin to recover, said Daniel Takieddine, CEO MENA at BDSwiss. Dubai's main share index retreated 1%, with top lender Emirates NBD losing 2.5% and sharia-compliant bank Dubai Islamic Bank falling 1.9%. In Abu Dhabi, the index declined 1.7%, dragged down by a 4.8% slide in Fertiglobe , while ADNOC Gas tumbled 3.3%. The energy firm, which made market debut in March, reported a 9% rise in its first-quarter net income on Thursday. Revenue, however, fell 15% year-on-year to $6.2 billion. Outside the Gulf, Egypt's blue-chip index slipped 1.3%, with almost all its constituents in the negative territory, including tobacco monopoly Eastern Company losing 3.7%. The Egyptian bourse saw international investors putting pressure on prices as they continue to sell in high volumes, in particular as risk appetite could deteriorate further as global traders consider major risk factors in the U.S. as well as risks of the Egyptian pound depreciating in the near future, said Takieddine. "At the same time, the government's efforts to privatize the economy could help limit the downside potential."
SAUDI ARABIA down 1% to 11,230 ABU DHABI fell 1.7% to 9,471 DUBAI dropped 1% to 3,525 QATAR lost 1.8% to 10,479 EGYPT lost 1.3% to 17,136 BAHRAIN was down 0.1% to 1,938 OMAN added 0.2% to 4,716 KUWAIT declined 1% to 7,541


(Reporting by Ateeq Shariff in Bengaluru; Editing by Shilpi Majumdar)

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