Wednesday 16 August 2023

Most Gulf markets in red as Chinese data disappoints | Reuters

Most Gulf markets in red as Chinese data disappoints | Reuters


Most stock markets in the Gulf ended lower on Wednesday as more disappointing Chinese economic data and the absence of meaningful stimulus from Beijing weighed on investor sentiment.

China's July new home prices fell for the first time this year, official data showed on Wednesday, as piecemeal policy support failed to shore up the embattled property sector, mounting pressure on authorities to deliver aggressive stimulus.

Saudi Arabia's benchmark index (.TASI) dropped 0.2%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 1.1% and Al Rajhi Bank (1120.SE) falling 0.4%.

Saudi crude oil exports fell for a third straight month in June to their lowest since September 2021, data from the Joint Organizations Data Initiative (JODI) showed on Wednesday, with big Asian buyers favouring cheaper Russian oil.

Dubai's main share index (.DFMGI) lost 0.1%, falling for a third consecutive session, with sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The Dubai stock market remained exposed to some price corrections after this year’s strong performance, said Daniel Takieddine, CEO MENA at BDSwiss.

"Sentiment could remain affected by weak Chinese data."

In Abu Dhabi, the index (.FTFADGI) declined 0.3%.

The Qatari benchmark (.QSI) gave up early gains to close 0.1% lower, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) retreating 0.5%.

Outside the Gulf, EGypt's blue-chip index (.EGX30) added 0.5%.

The Egyptian bourse resumed its rebound but could continue to find resistance near this year's highs as trading volumes decline again, said Takieddine.

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