Major Gulf stocks fall, mirroring oil prices, global equities

All major Gulf markets fell on Monday, in line with oil and global stocks as growing fears of a second wave of coronavirus infections revived economic worries.

Brent crude futures were $1.02, or 2.6% lower, at$37.71 a barrel by 0750 GMT, as new coronavirus infections hit China and the United States, raising the prospect that renewed outbreaks could weigh on the recovery of fuel demand.

A cluster of COVID-19 infections in Beijing has increased concerns about a resurgence of the disease in China.

Saudi Arabia’s benchmark index eased 0.4%, with National Commercial Bank, the kingdom’s largest lender, dropping 1.4% and Al Rajhi Bank down 0.3%. State-owned Saudi Aramco was down 0.2%.

On Sunday, the oil giant bought 2.1 billion shares of Saudi Basic Industries (SABIC) on the stock market, completing a deal to buy 70% of the petrochemical giant, according to sources and market data.

SABIC traded 0.3% lower.

The benchmark index in Dubai, the United Arab Emirates’ business and tourism hub, was 1.2% lower, weighed down by a 1.8% fall in Emaar Properties and a 1.6% drop in Dubai Islamic Bank.

The Abu Dhabi index slipped 0.5%, with top lender First Abu Dhabi Bank easing 1.8%.

The Qatari index lost 0.7%, with Qatar Islamic Bank shedding 1.8% and petrochemical firm Industries Qatar down 1.2%.

The Gulf state will begin lifting coronavirus lockdown restrictions under a four-phase plan starting on June 15, when some mosques can reopen and flights can depart, government spokeswoman Lulwa Rashed al-Khater said last week.