Most major Gulf markets closed lower on Wednesday, as weak economic growth in China renewed concerns about an economic downturn and low energy demand.
China's economic growth slowed sharply to 3% in 2022, its second-worst performance since 1976. Moreover, China's oil refinery output in 2022 had fallen 3.4% from a year earlier for its first annual decline since 2001, though daily December oil throughput rose to the second-highest level of 2022.
However, the lifting of COVID-19 restrictions in China is set to boost global oil demand this year to a new record high, the International Energy Agency (IEA) said on Wednesday, while price cap sanctions on Russia could dent supply.
The benchmark index (.TASI) in Saudi Arabia fell 0.2%, with luxury real estate developer Retal Urban Development (4322.SE) dropping 1%, while Arab National Bank (1080.SE) continued its slide for the fourth session to close 1.8% lower. Saudi's oil giant Aramco (2222.SE) remained flat at 0.2%.
On Wednesday, Aramco's trading arm acquired U.S.-based firm Motiva and launched Aramco Trading Americas. The new entity will be sole supplier and 'offtaker' of Motiva Enterprises, which owns the largest oil refinery in North America.
In Abu Dhabi, the index (.FTFADGI) fell 0.4% with the country's biggest lender First Abu Dhabi Bank (FAB.AD) down 1.9% and conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) declining 1.8%.
Dubai's benchmark index (.DFMGI) dropped 0.2%, on track to end a four-session winning streak. The index was dragged down by several financial and real estate stocks, with a fall of 0.8% in lender Emirates NBD (ENBD.DU) and a 1% decline in blue-chip developer Emaar Properties (EMAR.DU).
Qatar Stock index (.QSI) eased 0.2%, extending losses for the seventh straight session, with several stocks in the index moved into negative territory, led by a 3.5% slide in Qatar Commercial Bank (COMB.QA) and a 2.9% decline in Islamic bank Masraf Al Rayan (MARK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.9%, continuing its rally since Wednesday.
However, "the Egyptian stock market's direction remained uncertain after a surge of investments that followed the local currency's devaluation", said Daniel Takieddine, CEO MENA at BDSwiss.
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