Global stock slide pulls down most Gulf stock markets

Big 5

Most Gulf stock markets dropped on Monday, mirroring losses in global stocks after strong U.S. job gains dampened expectations the Federal Reserve will deliver a large rate cut.

The Kuwait bourse fell back after seven straight gains triggered by MSCI decision to upgrade Kuwaiti equities to its main emerging markets index.

Kuwait’s index decreased 0.3% after rallying recently on expectations that the MSCI move would trigger billions of dollars of inflows in Kuwaiti stocks.

Kuwait has gained over 25% year-to-date in anticipation of the MSCI move, outperforming its Gulf peers.

In Qatar, the index declined 0.7% with heavyweight Industries Qatar decreasing 1% and Commercial Bank fell 2.1%.

The Saudi index lost 0.3% as market heavyweight Saudi Basic Industries was down 0.2% and Al Rajhi Bank declined 0.1%.

The market is still up over 12% so far this year in a rally led by foreign investors.

Total ownership of Saudi stocks by foreign investors has increased to 7.47% as of June 30, up from 4.67% at the end of December, stock exchange data shows, reflecting increased active and passive fund flows this year.

Three of five tranches of Saudi stocks have joined the FTSE emerging market index this year and completed the first phase of joining the MSCI emerging market benchmark in May, with the second phase due in August.

The Abu Dhabi index slid 0.2% hurt by a 0.1% fall in country’s largest lender First Abu Dhabi Bank.

Bank Of Sharjah plunged 9.3% after reporting a 38% slump in first-quarter profit.

Dubai index increased 0.2 led by a 1.1% rise in its largest listed developer Emaar Properties.

Source: Reuters

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