Major Gulf markets fall on inflation, fuel demand concerns | Reuters

Major Gulf markets fall on inflation, fuel demand concerns | Reuters

Major Gulf bourses declined in early trade on Monday, in line with Asian shares and oil prices as an unexpected spike in U.S. inflation renewed fears over policy tightening and economic growth, while fresh COVID-19 restrictions in China caused concerns over fuel demand.

The U.S. consumer price index increased a bigger-than-expected 8.6% last month, the largest year-on-year increase since December 1981, official figures showed, dashing hopes that inflation had peaked. read more

Dubai's main share index (.DFMGI) tumbled 2.7%, weighed down by a steep slump in financial and real estate stocks.

The emirate's blue-chip developer Emaar Properties (EMAR.DU) and Sharia-compliant lender Dubai Islamic Bank (DISB.DU) dropped 4.2% and 2.6%, respectively

In Abu Dhabi, equities (.FTFADGI) declined 1.2%, set to extend losses to a straight ninth session, as the emirate's largest lender First Abu Dhabi Bank (FAB.AD) fell 1.2% and conglomerate International Holding Company (IHC.AD) dropped 0.4%.

Among other stocks, Dana Gas (DANA.AD) slipped 2.8% after the firm said that it is in active discussion with the Egyptian government to reach a deal on Block 6 North El Arish Concession.

Saudi Arabia's benchmark index (.TASI) fell 0.4% as Riyad Bank (1010.SE) decreased 1.5% and oil behemoth Saudi Aramco (2222.SE) eased 0.6%.

The energy index (.TENI) in Saudi Arabia dropped 0.7%.

However, Bupa Arabia (8210.SE) jumped 3.9% after the company's board proposed a capital increase by 300 million riyals ($79.97 million) with the issue of 1 bonus share for 4 shares owned.

The Qatari index (.QSI) eased 0.8%, with the Gulf's largest lender Qatar National Bank (QNBK.QA) losing 1.2%.

Separately, QatarEnergy signed a partnership deal with TotalEnergies (TTEF.PA) for first and largest phase of a nearly $30 billion expansion of the North Field project. read more