Most of the stock markets in the Gulf closed down, Thursday, and the Qatari index continued to record losses for the fourth session, amid concerns about global economic growth and the decline in oil prices.
The main index in Saudi Arabia fell 1.2 percent, a day after it recorded the largest decline in trading in two months. Al-Rajhi Bank shares fell 1.4 percent, and Aramco shares fell 1.1 percent.
The US Federal Reserve and the European Central Bank are expected to announce significant increases in borrowing costs this month. Most of the Gulf Cooperation Council countries, including Saudi Arabia, link their local currencies to the dollar and generally follow the movements of the Reserve Board’s policy, which exposes the region to a direct impact from the tightening of monetary policy in the United States.
In Qatar, the main index fell 1.8 percent, with almost all shares incurring losses, including Qatar Islamic Bank, which fell 2.8 percent.
Oil prices, a major catalyst for Gulf financial markets, continued to fall after new closures in China bolstered fears that inflation and higher interest rates would slow oil demand.
In Abu Dhabi, the main index closed down 1.6 percent, under pressure from the decline in the shares of First Abu Dhabi Bank, the largest bank in the UAE, by 2.9 percent.
The Abu Dhabi National Oil Company (ADNOC) said Thursday that it had sent the first shipment of low-carbon ammonia to Germany. She added that the shipment produced by Fertiglobe will be delivered to “Eurobis”, one of the largest copper recycling companies in the world.
Fertiglobe shares fell about 3%.
The Dubai index gave up its morning gains and closed down 0.8 percent.
Outside the Gulf region, Egypt’s blue-chip index fell 0.6 percent.
(Archyde.com)