Lower oil prices weigh on the region, most Gulf stocks in the red

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

Aug 30 (Reuters) – Most stocks in the Gulf region ended lower on Tuesday as oil prices fell sharply and fears of a potential global recession.

Crude oil prices, the main catalyst for Gulf financial markets, fell more than $3 a barrel on fears that a weaker global economy due to inflation would soften fuel demand and that Iraqi crude exports were unaffected by the conflict.

Brent crude futures for October settlement fell $3.81, or 3.63%, to $101.28 a barrel by 1156 GMT, after hitting a session low of $100.90 a barrel.

In many of the world’s largest economies, inflation is near double digits, levels not seen in nearly half a century. That could prompt more aggressive interest rate hikes by central banks in the U.S. and Europe, which could dampen economic growth and impact fuel demand. read more

Saudi Arabia Benchmark Index (.one) Down 0.6%, dragged down by a 2.9% drop in Sulaiman Al-Habib medical services (4013.SE) Al Rajhi Bank down 0.6% (1120.SE).

Qatar Index (.QSI) Down 0.1%, Qatar Islamic Bank (QISB.QA) It fell 1.3%.

In Abu Dhabi, the index (.FTFADGI) Abu Dhabi First Bank, the UAE’s largest bank, closed flat after falling more than 1% in the previous session (FAB.AD) It edged up 0.2%.

Dubai’s main stock index (.DFMGI)However, the stock bucked the trend and closed 0.8% higher, boosted by blue-chip developer Emaar Properties, which rose 2.7%. (Emar. You).

Beyond the Gulf, Egypt’s Blue Chip Index (.EGX30) Up 0.1%, snapping two sessions of losses, helped by Abu Qir Fertilizers up 2.7% (ABUK.CA).

The index, which has fallen more than 15% so far this year, has been under pressure due to a sharp decline in foreign portfolio investors and rising import costs for key commodities, especially since Russia’s invasion of Ukraine.

Reporting by Ateeq Shariff in Bengaluru; Editing by Krishna Chandra Eluri

Our standard: Thomson Reuters fiduciary principles.