Gulf stocks slide on oil volatility; Abu Dhabi gains

Sept 7 (Reuters) – Gulf stocks ended lower on Wednesday, led by Saudi Arabia as oil prices fluctuated on demand concerns, but Abu Dhabi edged higher.

Oil prices, the main driver of financial markets in the Middle East, were volatile on Wednesday as the market balanced demand concerns related to the risk of a looming recession with fears that Russia would halt all oil and gas supplies.

Most Gulf Cooperation Council (GCC) countries, including the United Arab Emirates, have their currencies pegged to the U.S. dollar and generally follow the Fed’s policy moves, leaving the region directly exposed to any monetary tightening by the U.S. central bank.

Saudi Arabia Benchmark Index (.one) It fell 1.1%, falling for a third session in a row, weighed down by real estate and financial stocks. Luxury developerRetal Urban Development Company (4322.SE) Down 1.9%, lender Al Rajhi Bank (1120.SE) It fell 0.8%.

In Qatar, the benchmark index (.QSI)It fell 0.8%, its eighth straight decline in the past nine sessions.petrochemical manufacturer industry qatar (IQCD.QA) and Ooredoo (ORDS.QA) They fell 1.7% and 2.4%, respectively.

Qatar stocks retreated as natural gas prices fell. Ahmed Fouad of Emporium Capital said uncertainty in energy products could continue to strongly impact major indices.

Meanwhile, Qatar’s central bank on Tuesday told banks in the Gulf state not to exchange its currency with entities outside the country without prior permission, a move aimed at ending the rial-dollar divide. read more

Banks should seek permission from the QCB before conducting any such transactions, the circular said.

In Dubai, the main stock index (.DFMGI) Slightly down 0.4%, with more losers than winners, hit by a 1.8% drop in blue-chip developer Emaar Properties (Emar. You) Diving on Air Arabia 2.3% (AIRA.DU).

Property prices in Dubai will rise at a slower pace this year and next than previously expected, as rising mortgage rates and the cost of living crisis will reduce foreign demand, a Reuters poll showed on Sept. 5. read more

Analysts say the recovery is fragile and uneven, with an oversupply of residential properties and rising interest rates weighing on prices in the coming months.

In Abu Dhabi, the index (.FTFADGI) Up 0.6%, boosted by Abu Dhabi First Bank, the country’s largest lender (FAB.AD), rose 0.8%.Group International Holding Company (IHC.AD) Gained 2.6% after its listed unit Al Seer Marine (ASM.AD) Announced a partnership agreement with Singapore-based Netbulk PTE to expand its global freight services.

Beyond the Gulf, Egypt’s Blue Chip Index (.EGX30) It fell 0.9%, falling after a three-day rally as traders moved to secure gains. Electronic payment platform Fawry For Banking Technology and Electronic Payment (FWRY.CA) down 2.4%, e-finance (EFIH.CA) Down 3.4%.

Reporting by Shamsuddin Mohd in Bengaluru; Editing by Maju Samuel

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