Gulf stock markets ended lower as investors worried about a slowdown in China and decreasing oil prices.
Most Gulf markets in red: Even after regulators lowered interest rates and pledged to provide greater support for the ailing economy, China’s new bank loans fell in July and other important credit indicators also declined.
The Dr. Sulaiman Al-Habib Medical Services index fell 1.9%, halting a three-session winning streak, while Saudi Arabia’s benchmark index fell 0.5%.
Saudi Awwal Bank fell 2.4% in other trading as the firm went ex-dividend.
According to Ahmed Negm, Head of Market Research MENA at XS.com, there were potential downside concerns on the Saudi stock market as traders switched to other times to sell.
“The market’s strength has been undermined by the most recent price corrections, but the main index has maintained a positive performance for the year.”
Emaar Properties, a blue-chip developer, saw a 1.2% decline, which contributed to a 0.1% decline in Dubai’s main share index.
The country’s largest lender, First Abu Dhabi Bank, saw a loss of 0.7%, causing the Abu Dhabi index to decline by 0.3%.
After seven weeks of gains fueled by tightening supply as a result of OPEC+ cuts, oil prices—which power the Gulf region’s economy—dropped around 1% due to worries about China’s sputtering economic recovery and a stronger dollar.
The petrochemical manufacturer Industries Qatar’s 1.9% decline caused the benchmark in Qatar to decline by 0.7%.
However, Outside of the Gulf, the top lender Commercial International Bank had a 1.3% increase, contributing to a 0.2% increase in Egypt’s blue-chip index.
According to the central bank’s announcement on Monday, Egypt sold 626.4 million euros ($682.34 million) worth of one-year euro T-bills in an auction at an average yield of 4%.