Mideast stocks: Most Gulf markets slip on Europe lockdowns, U.S. tax hike fears | Reuters

Mideast stocks: Most Gulf markets slip on Europe lockdowns, U.S. tax hike fears | Reuters

Most Gulf stock markets fell in early trade on Wednesday, in line with Asian shares, as coronavirus lockdowns in Europe and potential U.S. tax hikes hit risk appetite.

U.S. and European stock futures were also subdued in late Asian trading.

Saudi Arabia’s benhcmark index dropped 0.4%, with Riyad Bank shedding over 3%, while Al Rajhi Bank was down 0.5%.

However, insurer Alinma Tokio Marine surged about 9% after two of its major shareholders agreed not to transfer or dispose any of its shares for a five-year period.

In Dubai, the main share index eased 0.6%, hit by a 1% fall in Sharia-compliant lender Dubai Islamic Bank and a 0.6% decrease in blue-chip developer Emaar Properties.

Amid growing competition among Gulf states to position themselves for a post-oil future, Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum on Tuesday announced plans to restructure his government to make it more efficient.

Dubai’s economy, which is the region’s most diversified, was one of the hardest hit by the pandemic. S&P estimated that GDP contracted 10.8% last year.

In Abu Dhabi, the index eased 0.1%, with the country’s largest lender First Abu Dhabi Bank losing 0.4%.

The Qatari index lost 0.1%, weighed down by a 2.4% fall in Qatar Navigation, a top Doha-based shipping and logistics group.