Wednesday 6 December 2023

Mideast Stocks: Most Gulf bourses end in red on falling oil, #Saudi shares edge up

Mideast Stocks: Most Gulf bourses end in red on falling oil, Saudi shares edge up


Most stock markets in the Gulf closed lower on Wednesday on falling oil prices, although the Saudi index bucked the trend to close higher.

Oil prices - a catalyst for the Gulf's financial markets - continued to fall as investors weighed the effectiveness of an extension in OPEC+ cuts in tightening supply against a worsening demand outlook in China.

Concerns over China's economic health, which could limit overall fuel demand in the world's second-largest oil consumer, also weighed on prices. Dubai's main share index fell 0.2%, hit by a 0.7% decline in blue-chip developer Emaar Properties.

In Abu Dhabi, the index dropped 0.4%. Growth in non-oil business activity in the United Arab Emirates eased in November from multi-year highs seen the previous month as new order growth slowed and business confidence weakened, a survey showed on Wednesday.

Saudi Arabia's benchmark index, however, gained 0.3%, helped by a 1.9% increase in digital solutions provider Elm Co. On the other hand, oil giant Saudi Aramco eased 0.2%. The kingdom has lowered prices for the flagship Arab light crude it sells to Asia in January for the first time in seven months to $3.50 a barrel above the Oman/Dubai average, Aramco said on Wednesday.

The Qatari benchmark retreated 0.7%, falling for a fourth consecutive session, with Qatar National Bank losing 1.3%.

Outside the Gulf, Egypt's blue-chip index finished 1.7% lower as most of its constituents were in negative territory, including Commercial International Bank, which was down 1%. Separately, Egyptian inflation is expected to slow for a second month in November on base effects and moderating food price rises, a Reuters poll showed on Wednesday. Inflation had been working its way upwards over the last two years, climbing to a record high of 38% in September from 5.6% in November 2021.

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