Major Gulf stocks decline further after US crude crash

Major Gulf indexes traded lower on Tuesday, with financial shares suffering the biggest losses across the region, as investors were rattled by U.S. oil prices crashing to negative rates overnight.

Although prices of U.S. West Texas Intermediate (WTI) crude for May delivery hobbled back into positive territory on Tuesday, international benchmark Brent dipped as the global coronavirus crisis severely reduces demand for crude.

Brent futures for June delivery were down $1.72, or 7%, at $23.8 a barrel as of 0747 GMT.

Saudi Arabia’s benchmark index declined 1.5%, with oil giant Saudi Aramco losing 1.8%, whereas petrochemical firm Saudi Basic Industries sank 3.4%.

Elsewhere, Al Rajhi Bank retreated 1%.

Saudi Electricity Company gained 1.2% after waiving 2019 dividend on shares of Public Investment Fund (PIF), the kingdom’s sovereign wealth fund that has more than 74% stake in the firm.

Saudi Arabia’s 2020 budget projected oil revenues of 513 billion riyals ($136.76 billion). Riyadh does not disclose the oil price it bases its budget on, but some analysts estimated it at $55 per barrel.

Riyadh announced last month a nearly 5% cut in the 2020 government budget and said it would reassess expenditure according to developments in oil markets and the pandemic.

In Dubai, the index slid 2.4%, weighed by a 3.6% fall in Emirates NBD Bank and a 2.9% drop in Dubai Islamic Bank.