MIDEAST STOCKS-Major Gulf markets retreat in early trade - Agricultural Commodities - Reuters

MIDEAST STOCKS-Major Gulf markets retreat in early trade - Agricultural Commodities - Reuters:

Major Gulf stock markets traded lower on Thursday, with Saudi Arabian shares hit by an International Monetary Fund (IMF) forecast of a deeper than anticipated recession in the country.

Saudi Arabia’s benchmark index dropped 0.8%, with Al Rajhi Bank falling 0.7% and petrochemical company Saudi Basic Industries down 1.5%.

The Saudi economy will shrink by 6.8% this year, the IMF said on Wednesday, a sharper decline than a 2.3% contraction estimated in April, as low oil prices and the coronavirus pandemic hit hard.

Virus containment measures have crippled burgeoning areas of the country’s non-oil economy such as tourism and entertainment, and lower oil prices have hit state revenues.

In Dubai, the index declined 1%, with its largest bank Emirates NBD declining 1.7% and Emaar Properties down 0.7%.