Most Gulf markets in red on weak economic forecast; Qatar gains

Following a gloomy economic outlook for the region, most stock markets in the Gulf closed the day lower on Wednesday, with the Dubai index ending eight days of advances.

Most Gulf markets in red: “Five of the six Gulf Cooperation Council (GCC) nations are expecting considerably worse economic growth than anticipated three months ago due to reduced oil prices, the region’s primary export.”

Only Bahrain’s growth rate was increased from 2.7% to 3.0% in the most recent survey. This year, the six GCC economies are expected to grow on average by 1.5%, which is slightly more than the 2.8% predicted in April.

Riyad Bank’s 1.1% decline and Banque Saudi Fransi’s 1.9% decline each contributed to a 0.1% decline in Saudi Arabia’s benchmark index.

The major share index in Dubai fell 0.9% while trading at an 8-year high.

Emaar Properties, a well-known developer, lost 1.6%, and Emirates Central Cooling Systems lost 2.1%.

The main index had great performances and reached new highs for the year, which caused price corrections on the Dubai Stock Exchange, according to George Pavel, general manager of Capex.com Middle East.

In this sense, traders should keep an eye on US firm earnings while focusing on regional banks.

Abu Dhabi’s index dropped 0.3%.

The price of the international standard for oil, Brent, was trading above $80, supported by China’s commitment to reviving its economy and predictions that the US Federal Reserve would soon stop rising interest rates.

The majority of its constituents, including Qatar National Bank, the largest lender in the Gulf, which was up 1.8%, helped the Qatari index defy the trend and ended 0.7% higher.

However, Outside of the Gulf, the tobacco monopoly Eastern Co lost 1.1%, and Egypt’s blue-chip index fell 0.2%.