Gulf markets dip as oil declines
Gulf stock markets were muted in early Tuesday trading due to declining oil prices as China’s economic reforms disappointed investors, according to Reuters.
Oil prices, a key driver for Gulf markets, dropped for a second consecutive day as Chinaطس promises to overhaul its economy amidst sluggish growth since the COVID-19 pandemic did not alleviate investor worries about reduced consumption.
To support prices amidst global growth worries and increased output outside their group, OPEC+ extended their voluntary oil production cuts of 2.2 million barrels per day into the next quarter.
Saudi Arabia’s main index fell by 0.1 per cent, impacted by a 1.2 per cent drop in the Saudi National Bank, the country’s largest lender.
However, Saudi Aramco, the oil giant, saw a 0.6 per cent increase. Singapore’s Temasek Holdings has shortlisted Aramco to potentially buy most of the assets of Pavilion Energy, a liquefied natural gas trading firm.
In Abu Dhabi, the index dropped by 0.1. Dubai’s primary share index fell by 1.1 per cent, affected by a 1 per cent decrease in Emaar Properties and a 2 per cent drop in toll operator Salik CO.
Non-oil business activity in the UAE picked up in February, following a slowdown in January, due to increased output and business confidence.
The Qatari benchmark fell by 0.7 per cent, with most of its components, including the Gulf’s largest lender, Qatar National Bank, in the red.
