Gulf stocks retreat after oil slump; Abu Dhabi rises

Bahraini traders are pictured at the Bahrain Exchange in Manama, Bahrain on November 5, 2020.REUTERS/Hamad I Mohammed

Sept 7 (Reuters) – Most of the major Gulf stocks fell on Wednesday, tracking oil prices to a seven-month low as demand concerns and interest rate hikes reignited, but Abu Dhabi bucked the trend.

Oil prices, a key driver of financial markets in the Middle East, fell to $91.75 a barrel by 0644 GMT after falling 3 percent in the previous session.

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

Saudi Arabia Benchmark Index (.one) It fell 0.1%, falling for a third straight session, as financials and materials stocks traded sideways. Chemical Manufacturer Sahara International Petrochemicals – Sipchem (2310.SE): down 1.5%, while the largest bank Al Rajhi Bank (1120.SE) rose 0.4%.

In Dubai, the main stock index (.DFMGI) Slightly down 0.4%, falling more than rising, hit by a 0.8% drop in blue-chip developer Emaar Properties (Emar. You) Dubai Islamic Bank 0.3% (DISB.DU).

In Abu Dhabi, the index (.FTFADGI) It edged up 0.1% on the back of the country’s largest bank, First Abu Dhabi Bank (FAB.AD), up 0.2%.Group International Holding Company (IHC.AD) It also rose 0.7% after its listed unit Al Seer Marine (ASM.AD) Announced a partnership agreement with Singapore-based Netbulk PTE to expand its global freight services.

In Qatar, the benchmark index (.QSI)Also down 0.6%, petrochemical maker Industrial Qatar was pressured by its industrial and financial stocks after edging up in the previous session. (IQCD.QA) down 1.5% and commercial banks (COMB.QA) It fell 1.9%.

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.

Reporting by Shamsuddin Mohd in Bengaluru, Editing by William Maclean

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