Mideast Stocks: Major Gulf bourses subdued in early trade | ZAWYA MENA Edition

Mideast Stocks: Major Gulf bourses subdued in early trade | ZAWYA MENA Edition

Major stock markets in the Gulf were in negative territory early on Wednesday, with property shares weighing on the Dubai index.

Dubai's main share index lost 0.5%, with blue-chip developer Emaar Properties dropping 1% and DAMAC Properties falling 0.8%.

Last week, United Arab Emirates property tycoon Hussain Sajwani made an offer to buy out minority shareholders in DAMAC, which he has run for nearly two decades.

The all-cash offer comes amid a years-long slump in Dubai's once hot property market, a decline exacerbated by the economic hit from the COVID-19 pandemic.

Separately, Emirates got an additional $1.1 billion in state support from Dubai after a collapse in long-haul travel due to the coronavirus pandemic triggered the airline's first annual loss in more than three decades.

Saudi Arabia's benchmark index was down 0.1%, driven lower by a 1.8% fall in Dr Sulaiman Al-Habib Medical Services.

The kingdom's inflation rate rose for the second consecutive month in May, climbing to 5.7% from 5.3% in April, again reflecting a tripling of value-added tax (VAT) to 15% last year, official data showed on Tuesday.

The VAT increase, which went into effect in July, came as the Saudi government sought to bolster its coffers after being hit by last year's oil price crash and the pandemic, as well as voluntary oil production cuts to help stabilise world prices.

In Abu Dhabi, the index eased 0.1%, hit by a 0.2% fall in the country's largest lender First Abu Dhabi Bank.

Abu Dhabi, the second-most populous emirate in the UAE, restricted access to shopping malls, restaurants, cafes and other public places from June 15 to those who have been vaccinated against COVID-19 or recently tested negative.

The Qatari index fell 0.2%, with Qatar National Bank losing 0.9%.

However, sharia-compliant lender Masraf Al Rayan added 0.4%, after Qatar Financial Markets Authority approved its merger with Khalij Commercial Bank.

Shares of Khalij Commercial Bank, which is not part of the index, advanced 1.1%.