Gulf stocks end mixed on recession fears

Investors monitor a screen showing stock information at the Abu Dhabi Stock Exchange on June 25, 2014. REUTERS/Stringer

June 29 (Reuters) – Gulf stocks ended mixed on Wednesday as worries about inflation and the possibility of a recession intensified, while Egyptian stocks rebounded a day after hitting a two-year low.

In Abu Dhabi, stocks (.FTFADGI) It closed down 0.4%, led by a 1.6% drop in Abu Dhabi First Bank, the largest bank in the United Arab Emirates (FAB.AD).

However, Integrated International Holdings Corporation (IHC) (IHC.AD) It closed up 0.4 percent after rising about 6 percent to 305 dirhams ($83.05), valuing it at more than $150 billion.

Alpha Dhabi Holding, part of IHC, on Tuesday (Alpha Habi.AD) Announces increased stake in Aldar Properties (Arda.AD) and become the single largest shareholder.

Shares in Alpha Dhabi rose 2.1%, while Aldar fell 0.2%.

IHC’s assets include companies in the fast-growing healthcare and industrial sectors, led by Sheikh Tanun bin Zayed Al-Ah, UAE National Security Adviser and brother of the country’s President Sheikh Mohamed bin Zayed. Lernahyan as chairman.

Dubai’s main stock index (.DFMGI) Down 0.2%, Emirates Consolidated Telecom (du.du) Down 2.1% and top lender Emirates NBD (ENBD.DU) fell 1.5%.

Daniel Takieddine, CEO of MENA BDSwiss, said the Dubai market is still facing a new price correction as global sentiment shifts, while an economic slowdown could affect banks in the UAE.

Qatar Benchmark (.QSI) Down 0.5%, dragged by a 1.8% drop in Qatar National Bank, the Gulf’s largest lender (QNBK.QA).

HSBC said on Wednesday it had lowered the bank’s target price to 22.2 riyals from 25.6 riyals earlier.

Saudi Arabia Benchmark Index (.one) Gained 0.5%, led by the country’s largest lender, the National Bank of Saudi Arabia, up 2.9% (1180.SE).

Takieddine said Saudi stocks were doing well on expectations for oil prices.

“With supply still an issue, the market could benefit from higher oil prices,” he said.

Oil prices, the main catalyst for Gulf financial markets, rose for a fourth session in a row, as worries about tight supply offset concerns about a weakening global economy.

Beyond the Gulf, Egypt’s Blue Chip Index (.EGX30) It rebounded 0.5% a day after hitting its lowest point in more than two years.

Reporting by Ateeq Shariff in Bengaluru; Editing by Allison Williams

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