Wednesday 23 August 2023

Most Gulf markets in red on economic worries | Reuters

Most Gulf markets in red on economic worries | Reuters


Most stock markets in the Gulf ended lower on Wednesday as gloomy global manufacturing data grabbed attention ahead of an annual meeting of central bankers at Jackson Hole in the United States.

Manufacturing data from a host of purchasing managers' index (PMI) surveys on Wednesday gave a steer on the health of economies across the world.

Saudi Arabia's benchmark index (.TASI) gave up early gains to close 0.1% lower, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 0.9%.

Separately, the kingdom's Jadwa Investment has acquired a 35% equity stake in Kuwait's Gissah Perfumes Company, which is slated for a listing in Riyadh, the companies said in a joint statement on Wednesday.

In Abu Dhabi, the index (.FTFADGI) dropped 0.4%.

Oil prices - a catalyst for the Gulf's financial markets - were slightly lower with Brent crude futures dropping 0.75% to $83.75 per barrel.

The Qatari index (.QSI) dropped 1.2%, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar (IQCD.QA), which was down 1.2%.

Markets are also looking for hints on the outlook for interest rates when Federal Reserve officials and policymakers from the European Central Bank (ECB), the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, on Thursday.

Oil and gas exporting countries in the Gulf tend to follow the Fed's rate moves, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Dubai's main share index (.DFMGI), however, bucked the trend to finish 0.8% higher.

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

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