Mideast Stocks: Major Gulf stocks slide as virus fears outweigh stimulus measures | ZAWYA MENA Edition

Mideast Stocks: Major Gulf stocks slide as virus fears outweigh stimulus measures | ZAWYA MENA Edition:

Major Gulf stock markets fell sharply in early trade on Wednesday after stimulus measures failed to soothe investors worried about the global economic impact from the coronavirus.

Saudi Arabia and the United Arab Emirates (UAE), whose currencies are pegged to the dollar, cut key rates by 50 basis points on Tuesday, tracking the U.S. Federal Reserve's emergency move to soften the impact of the epidemic.

Saudi Arabia and the UAE have begun to feel the virus' impact on exports and tourism as growth in their private sectors slipped in February, according to a survey by IHS Markit.

Major concerts and sporting events have also been cancelled or postponed in Gulf Arab states, where more than 2,400 cases of the virus, mostly in Iran have been reported.

Saudi Arabia's benchmark index fell 1.7%, with financials and petrochemical shares leading declines.

Al Rajhi Bank declined 2.8%, while the country's largest lender National Commercial Bank shed 2.3%.