Markets in the Middle East ended lower on Monday, with Saudi's main index (.TASI) trading lower for the fourth straight session amid weak oil prices.
Oil prices fell by around $5 a barrel on Monday as investors pinned hopes on diplomatic efforts by Ukraine and Russia to end their conflict, while a surge in COVID-19 cases in China spooked the markets.
Energy-heavy Saudi Arabia's benchmark share index (.TASI) fell 0.9%, with oil giant Saudi Aramco (2222.SE) down 1.6%.
In Abu Dhabi, the index (.FTFADGI) lost 1%, hit by a 1.9% decline in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
Dubai's main share index (.DFMGI) fell 1.4%, hardest-hit in the region, pressured by financials. Amlak Finance (AMLK.DU) dropped nearly 10%, while Emirates NBD Bank (ENBD.DU) slipped 3.7%.
"While the fundamentals remain potent, the (Middle East) region's markets could see additional price corrections as investors move to secure their gains due to the uncertainties around the development of the global economy," said Wael Makarem, senior market strategist at Exness.
"Investors' attention is shifting towards this week's Federal Reserve meeting which could alter markets' direction and forecasts," Makarem added.
The U.S. Federal Reserve is widely expected to raise interest rates by a quarter of a percentage point at a two-day event later this week.
The Qatari benchmark (.QSI) inched 0.1% lower.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended nearly 0.6% lower, with top lender Commercial International Bank Egypt (COMI.CA) losing 0.7%.
"The Egyptian stock market continued to record price corrections as risk aversion grows among investors," says Makarem, adding that the country could feel a hit, if commodities remain high due the ongoing conflict in Europe.
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