Egypt, Kuwait Lead Drop in Mideast Stocks on Concern With Global Recovery - Bloomberg

Egypt and Kuwait stocks retreated, leading a drop in Middle East markets, on concern Europe’s debt crisis will slow the global economic recovery and on speculation second-quarter earnings in the Gulf may disappoint.

Egypt’s EGX 30 Index lost 0.8 percent to 6,255.46, the lowest intraday level since June 15, as of 12:18 p.m. in Cairo, as Commercial International Bank Egypt SAE declined. Kuwait’s gauge slid 1.2 percent, the most in almost two weeks, and Israel’s TA-25 Index declined 0.8 percent. Gulf Bank KSC lost 5.6 percent as Al-Qabas said the Kuwaiti lender may allot 35 million dinars ($120 million) for second-quarter provisions.

Global sentiment worsened last week as disappointing U.S. housing data and a surge in the cost to protect from a Greek default reignited concern about the economic recovery. The Stoxx Europe 600 Index had its first weekly drop in more than a month and the Standard & Poor’s 500 Index fell 3.7 percent. Crude rose the most in two weeks and gold gained on speculation a weakening dollar will boost its appeal as an alternative asset.