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In Dubai, the main stock index fell 1.3%, falling for a fourth straight session
Shares in developer Emaar Properties fell 2% on a weaker outlook for Dubai’s property market amid rising borrowing costs. — file photo
Middle East stocks ended lower on Monday, with Dubai leading losses, dragged down by Emaar real estate, while Egypt extended gains led by telecom stocks.
Saudi Arabia’s non-oil private sector expanded at the fastest pace since October in August, a survey showed, as improving demand conditions boosted business activity.
A similar survey in the UAE showed that the non-oil private sector grew at the fastest pace since June 2019 in August, helped by improved demand and lower selling prices, although confidence in the future slipped to a 17-month low .
In Dubai, the main stock index fell 1.3%, its fourth straight session of losses. Shares in developer Emaar Properties fell 2% on a weaker outlook for Dubai’s property market amid rising borrowing costs.
Analysts say property prices in Dubai will rise at a slower pace this year and next than previously expected, as higher mortgage rates and the cost of living crisis will reduce foreign demand.
Most 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.
Meanwhile, Dubai road toll operator Salik said on Monday it would sell a 20 percent stake in the company through an initial public offering, the third state-linked entity to seek a listing this year.
Wael Makarem, senior market strategist at Exness – Mena, said there could be a sentiment reversal in the market following the announcement of Salik’s IPO as it could attract investors looking for new opportunities.
Saudi Arabia’s benchmark index fell 0.7%, with the National Bank of Saudi Arabia down 1.9% and Al Rajhi Bank down 0.8%.
The Abu Dhabi index fell 0.7%, pressured by a 1.2% drop in First Abu Dhabi Bank, the country’s largest lender.
However, Alpha Dhabi Holding edged higher after its subsidiary Pure Health signed an agreement to acquire a minority stake in leading US healthcare provider Ardent Health Services for a total investment of AED1.8 billion.
In Qatar, the benchmark index also fell 0.8%, falling for a sixth straight session, as financial shares fell the most in the index, with Qatar National Bank, the largest bank in the Gulf, down 2% and Qatar Islamic Bank up 1.5%.
Outside the Gulf, Egypt’s blue-chip index rose 1.7%, while Telecom Egypt surged 15.8%.
Telecom Egypt clarified media reports that Qatar’s sovereign wealth fund intends to buy the company’s stake in Vodafone Egypt. The telco said it has yet to receive formal offers from any organisations.
Egyptian stocks are likely to post additional gains due to improving conditions in non-energy sectors, Makarem said. — Reuters
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