Wednesday 4 March 2020

Mideast Stocks: Middle East shares decline as coronavirus fears overshadow stimulus | ZAWYA MENA Edition

Mideast Stocks: Middle East shares decline as coronavirus fears overshadow stimulus | ZAWYA MENA Edition:

Stock markets in the Middle East retreated on Wednesday, as an emergency rate cut from the U.S. Federal Reserve failed to quell investor nerves over the coronavirus's widening global economic fallout.

The World Health Organization warned on Tuesday of a global shortage and price gouging for protective equipment to fight the fast-spreading virus. It asked companies and governments to increase production by 40% as the death toll from the respiratory illness mounted. 

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

Dubai's main share index ended 2.2% lower, dragged down by a 3.8% fall in blue-chip developer Emaar Properties and a 2.5% drop in Emirates NBD Bank.

The Abu Dhabi index slid 2.8%, with First Abu Dhabi Bank tumbling 5%, reaching its lowest level since July 2018. The UAE's largest lender traded ex-dividend.

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