Most stock markets in the Gulf ended lower yesterday, with sentiment weighed down by unease about rapidly rising interest rates, an escalation in the Ukraine war and falling oil prices.
Dubai’s benchmark index gave up early gains to close 0.6 per cent lower, with blue-chip developer Emaar Properties retreating 2.2pc. The Dubai bourse was volatile as traders remained concerned about the global economy, said Ahmed Fouad, head of sales at Emporium Capital. “At the same time, the local economy was resilient and could help support the market.”
The Abu Dhabi index fell 0.8pc. Crude prices, a key catalyst for the Gulf’s financial markets, dropped about 2pc, extending the previous session’s almost 2pc decline, as recession fears and a flare-up in Covid-19 cases in China raised concerns over global demand.
Losses were limited, however, by a tight market and last week’s decision by the Organisation of the Petroleum Exporting Countries (Opec) and allies including Russia, together known as Opec+, to lower their output target by 2 million barrels per day.
Saudi Arabia’s benchmark index fell 0.1pc, hit by a 2.5pc fall in the kingdom’s biggest lender Saudi National Bank. However, Retal Urban Development Company rose 2pc after the firm signed a sub-development agreement with the National Housing Company to develop 550 housing units.
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