Economic news

Gulf Bourses Track Global Shares, Oil Prices Lower

Oct 10 (Reuters) - Stock markets in the Gulf fell on Monday, tracking global shares and oil prices lower, with the Saudi index extending losses for a third session.

Global shares dropped after Russian missiles pounded cities across Ukraine and as renewed concern about the economic outlook sent investors into safe-haven assets such as the dollar and bonds.

Dubai's main share index closed 1% lower, hit by a 2.7% fall in blue-chip developer Emaar Properties and a 2.6% decline in diversified investment group Dubai Investments.

The negative performance came after a volatile week during which investors continued to contemplate global economic conditions, said Wael Makarem, senior market strategist at Exness.

"As a result, the market could see additional price corrections for the remainder of the week."

In Abu Dhabi the index dropped 0.8%, with the country's biggest lender First Abu Dhabi Bank losing 1.2%.

However, shares of hospital operator Burjeel Holdings rose 15.5% on their market debut to 2.31 dirhams per share, up from an initial public offering price of 2 dirhams.

The listing is the latest in a string of IPOs in the Gulf that have defied wider market trends.

Saudi Arabia's benchmark index fell 0.3%, with Retal Urban Development Co falling 2.7%.

According to Makarem, price corrections were seen as traders booked gains in recent days, with volatility lingering.

"The market remains exposed to the conditions in oil markets."

Crude prices, a key factor for the Gulf's financial markets, ended five gains of gains as slowing economic activity in China, the world's biggest crude importer, revived concerns about a global recession and falling global fuel demand.

The Qatari index closed 0.5% lower, weighed down by a 2.8% fall in Qatar National Bank (QNB)

After trading hours, QNB, the Gulf's biggest lender said that third-quarter net profit rose nearly 14% as net interest income jumped nearly a third.

Outside the Gulf, Egypt's blue-chip index added 0.1%.

($1 = 3.6728 UAE dirham)

Reporting by Ateeq Shariff in Bengaluru; Editing by Kirsten Donovan

Source: Reuters

To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree