Wednesday 19 May 2021

MIDEAST STOCKS Most major Gulf markets track lower oil prices; #Dubai gains | Reuters

MIDEAST STOCKS Most major Gulf markets track lower oil prices; Dubai gains | Reuters


Major Gulf markets ended lower on Wednesday, mirroring weak oil prices, while Dubai extended gains from the previous session following an upbeat assessment of its property shares by Morgan Stanley.

Brent crude futures fell $1.4, or 2% to $67.31 a barrel at 1215 GMT, on renewed demand concerns as coronavirus cases in Asia rise and on fears rising inflation might lead the U.S. Federal Reserve to raise interest rates, which could limit economic growth.

The movement in oil prices is a key catalyst for the Gulf region's financial markets.

Saudi Arabia's benchmark index (.TASI) finished 0.5% lower, hit by 1% fall in Al Rajhi Bank (1120.SE) and a 0.6% decrease in Saudi National Bank (1180.SE), the country's largest lender.

Dubai's main share index (.DFMGI) gained 0.2%, with blue-chip developer Emaar Properties (EMAR.DU) rising 1.8%, while its shopping centre unit Emaar Malls (EMAA.DU) closed 3.2% higher.

The emirate's property prices are rising for the first time in six years, Morgan Stanley (MS.N) said in a research note, amid higher demand and a slowdown of project launches since 2017.

Meanwhile, Dubai expects to attract more than 5.5 million overseas visitors this year, hopeful that new markets can help to make up for the loss of visitors from key places where travel is restricted due to the coronavirus pandemic. read more

Elsewhere, Damac Properties (DAMAC.DU) advanced 1.6%.

In Abu Dhabi, the index (.ADI) fell 0.2%, weighed down by a 1.5% fall in aquaculture company International Holding (IHC.AD).

Abu Dhabi Ship Building ADSB.AD surged 15%, building on gains in the previous session, after the United Arab Emirates signed a 3.5 billion dirham ($952.95 million) contract with the company to manufacture new patrol vessels for the Gulf Arab state's navy. read more

The Qatari benchmark (.QSI) fell 0.7%, as most of the stocks on the index were in negative territory including Industries Qatar (IQCD.QA), which retreated 2.2%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.2%, helped by a 2% rise in investment bank EFG Hermes (HRHO.CA).


No comments:

Post a Comment