Dubai equities lead Gulf losses as investors remain cautious about the pace of economic recovery, while volatility jumps in global markets.
Dubai’s DFM General Index lost as much as 2%, with banks weighing on its performance and an indicator for short-term volatility climbed to the highest level since early May. Equity gauges in Abu Dhabi, Saudi Arabia, Qatar, Kuwait and Bahrain also declined between 0.3% and 1.3%.
Shares in emerging markets fell for a second day on Friday, trimming gains from earlier this month after the Federal Reserve warned the road to a full U.S. recovery will be a long one. Fears of a second wave of coronavirus infections in the U.S. also added to risk aversion, and Brent crude posted the first weekly drop since April.
“Volumes remains low as investors remain cautious following the volatility witnessed globally,” said Marie Salem, head of institutions at Daman Securities in Dubai. She added that lower oil prices last week should put some additional pressure on the Saudi market.
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