Most major Gulf bourses ease on recession worries | Reuters

Most major Gulf bourses ease on recession worries | Reuters

Most major stock markets in the Gulf slipped in early deals on Tuesday, tracking losses in Asian shares, while Saudi Arabia bucked the trend to trade higher on the back of gains in banks.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dipped 0.4% after a renewed spike in European energy prices stoked fears of recession. The index has fallen every day in the past week.

Benchmark gas prices in the European Union surged 13% overnight to a record peak.

In Qatar, the stock index (.QSI) declined 1.4%, dragged down by a 1.8% drop in Qatar National Bank (QNBK.QA), the Gulf's biggest lender, and a 1.5% fall in Qatar Islamic Bank (QISB.QA).

Dubai's main share index (.DFMGI) lost 0.2%, hit by a 0.7% fall in blue-chip developer Emaar Properties (EMAR.DU).

In Abu Dhabi, shares (.FTFADGI) eased 0.1%, with conglomerated International Holding Co (IHC.AD) down 0.2%.

Saudi Arabia's benchmark index (.TASI), however, added 0.2%, helped by a 0.7% increase in Al Rajhi Bank (1120.SE) and a 0.6% rise in Saudi National Bank (1180.SE).

Crude prices, a key catalyst for the Gulf's financial markets, rose as renewed concerns over tight supply dominated market sentiment after Saudi Arabia warned that the major oil producer could cut output to correct a recent oil price decline.

The Organization of the Petroleum Exporting Countries stands ready to reduce production to correct the recent oil price fall driven by poor futures market liquidity and macro-economic fears, which has ignored extremely tight physical crude supply, OPEC's leader Saudi Arabia said on Monday. read more