Kuwait Stocks Lead Gulf Losses as Banks Face Pressure: Inside EM
Dubai Stocks Lead Gulf Losses as Banks Face Pressure: Inside EM
(Bloomberg) --
Most equity markets in the Gulf declined as investors remain cautious about the pace of the economic recovery, while volatility jumped in global markets.
The main equities index in Kuwait led losses, finishing 3.2% lower. In Dubai, the DFM General Index lost as much as 2%, with banks weighing on its performance and as an indicator for short-term volatility climbed to the highest level since early May. Equity gauges in Abu Dhabi, Saudi Arabia, Qatar and Bahrain also declined between 0.2% and 0.5%, while the index in Oman rose 0.2%.
Shares in emerging markets fell for a second day on Friday, trimming gains from earlier this month after the Federal Reserve warned the road to a full U.S. recovery will be a long one. Fears of a second wave of coronavirus infections in the U.S. also added to risk aversion, and Brent crude posted the first weekly drop since April.
“Volumes remain low as investors remain cautious following the volatility witnessed globally,” said Marie Salem, head of institutions at Daman Securities in Dubai. She added that lower oil prices last week should put some additional pressure on the Saudi market.
| HIGHLIGHTS: |
|---|
|
|
|
MIDDLE EASTERN MARKETS:
- The Premier Market Index in Kuwait retreated 3.2%, with National Bank of Kuwait and Kuwait Finance House falling 4% and 3.8%, respectively
- MORE, on June 11: A Whole Day’s Trades Canceled in Kuwait Over Dividend Chaos
- The DFM General Index extended loss this year to 24%, the most in the Gulf
- On Sunday, lender Emirates NBD fell 1.2%, pressuring the index by the most
- Commercial Bank of Dubai rises 2.9%, the most in over a week, after approving the increase of foreign ownership limit to 40% from June 14
- In Riyadh, the Tadawul All Share Index ends 0.5% lower
- Saudi Aramco falls 0.3% to 32.25 Saudi riyals
- READ: Aramco to Pay $24.8 Billion to PIF For Sabic Stake: Maaal
- Amlak International for Real Estate Finance to offer 27.18m shares in an initial public offering in the Saudi stock exchange this month
©2020 Bloomberg L.P.