Tuesday 20 June 2023

Gulf bourses end mixed on China growth concerns | Reuters

Gulf bourses end mixed on China growth concerns | Reuters


Gulf stock markets ended mixed on Tuesday as investors were cautious amid volatile oil prices and awaited more details on China's plans to shore up its sluggish economic recovery, with Dubai and Qatar ending lower and Saudi and Abu Dhabi closing higher.

China on Tuesday cut two benchmark lending rates by 10 basis points each. The rate cuts are the latest in a string of moves by Beijing to shore up a slowing recovery in the world's second-largest economy.

Dubai's benchmark index (.DFMGI) extended losses to a second straight session, ending 0.3% lower. The index was dragged down by losses in financial, utilities and industrial sectors with Emaar Properties (EMAR.DU) slumping 1.2% and Emirates Central Cooling Systems (EMPOWER.DU) dropping 0.6%.

The emirate's largest lender Emirates NBD (ENBD.DU) slipped 1%.

In Qatar, the benchmark index (.QSI) fell 0.2%, giving up the previous session's gains, weighed by a 1.2% decline in Qatar National Bank (QNBK.QA), the region's largest lender, and a 1.6% drop in Ezdan Holding (ERES.QA).

Saudi Arabia's benchmark index (.TASI) inched up 0.1%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 0.7% and Company for Cooperative Insurance (8010.SE) climbing 2.3%.

Shares of Jamjoom Pharmaceuticals Factory (4015.SE) jumped as much as 30% to 78 riyals in its market debut from an offer price of 60 riyals.

In Abu Dhabi, the index (.FTFADGI) advanced for a third consecutive session, rising 0.1%, buoyed by a 1.1% gain in Alpha Dhabi (ALPHADHABI.AD) and a 1.8% rise in Burjeel (BURJEEL.AD).

"Oil prices remained volatile as Chinese economic recovery continues to fuel concerns among traders, affecting oil demand expectations," said Daniel Takieddine, CEO MENA at BDSwiss.

Crude prices - a key catalyst for the Gulf's financial markets - edged up on Tuesday with Brent crude up 0.9% at $76.78 a barrel at 1226 GMT.

Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%, extending previous session losses with financial and materials sectors trading in the red.

Commercial International Bank (COMI.CA) and Misr Fertilizers Production (MFPC.CA) slipped 0.7% and 4%, respectively. Ezz Steel (ESRS.CA) slumped 4.7%.

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