#Dubai leads major Gulf markets lower; Saudi index gains | Reuters

Dubai leads major Gulf markets lower; Saudi index gains | Reuters

Most stock markets in the Middle East ended lower on Thursday, with Dubai leading the losses, as a surge in COVID-19 cases rattled investor confidence, although Saudi Arabia bucked the trend to close higher.

The main share index in Dubai, the Middle East’s trade and tourism hub, dropped 1.5%. The index also posted its second weekly loss in five, losing 1% over the five sessions to Thursday.

Blue-chip developer Emaar Properties slid 2.5%, while Dubai Investments retreated 4.9%, to become the top loser on the index, a day after it reported a sharp decline in full-year profit.

A second wave of coronavirus infections threatens to upend a tourism boom in Dubai which provided a salve to its battered economy.

Dubai, one of the few destinations open to international travellers since July, has yet to impose the toughest restrictions after record daily infections in the UAE, in the hopes that vaccinations will spare a repeat of last year’s lockdown.

Following the correction of major exchanges including the U.S. at the end of January, easing of the local market is almost inevitable, said Daniella Stoeva, business market analyst with ICM.com.

The benchmark index in Saudi Arabia rose 0.9%, with Al Rajhi Bank advancing 3.5% and National Commercial Bank, the kingdom’s biggest lender, rising 1.7%.

The kingdom’s non-oil private sector grew strongly in January, its fifth straight month of expansion, as output soared and firms were hopeful of a substantial economic recovery, a survey showed on Wednesday.

In Abu Dhabi, the index slipped 0.2%, with the country’s largest lender First Abu Dhabi Bank losing 0.3%.

The Qatari index fell 0.4%, hit by a 1.5% fall in petrochemical maker Industries Qatar.