Most Gulf markets end lower on oil and recession fears

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

Sept 1 (Reuters) – Most Gulf stocks ended lower on Thursday, with the Qatar index falling for a fourth straight session on worries about global economic growth and weaker oil prices.

Saudi Arabia Benchmark Index (.one) Shares in Al Rajhi Bank fell 1.2% a day after their biggest intraday drop in two months (1120.SE) Down 1.4% oil giant Saudi Aramco (2222.SE) It fell 1.1%.

Both the Federal Reserve and the European Central Bank are expected to significantly raise borrowing costs this month. Euro zone inflation hit another record high last month, overnight data showed, cementing the case for the ECB to raise interest rates by 75 basis points (bps) next week.

Most GCC countries, including Saudi Arabia, have their currencies pegged to the dollar and generally follow the Fed’s policy moves, leaving the region directly affected by U.S. monetary tightening.

Qatar Index (.QSI) Down 1.8% as almost all stocks in the index are in negative territory, including Qatar Islamic Bank (QISB.QA)down 2.8%.

Oil prices tumbled, a key factor in Gulf financial markets, as new COVID-19 lockdown measures in China heightened concerns that high inflation and higher interest rates are denting fuel demand.

Brent crude futures were down $2.10, or 2.2 percent, at $93.54 a barrel by 1013 GMT.

In Abu Dhabi, stocks (.FTFADGI) It closed down 1.6%, hit by a 2.9% drop in First Abu Dhabi Bank, the country’s largest lender (FAB.AD).

The UAE’s Abu Dhabi National Oil Company (ADNOC.UL) said on Thursday it had sent its first shipment of low-carbon ammonia to Germany.

Goods produced by Fertiglobe (FERTIGLOBE.AD)will be delivered to Orubis (NAFG.DE)The company said it was one of the largest copper recyclers in the world.

Shares of Fertiglobe fell about 3%.

Dubai’s main stock index (.DFMGI) It gave up early gains and closed down 0.8%.

Farah Mourad, senior market analyst at XTB, said Dubai stocks were volatile as traders considered strong local fundamentals and a weak global economy.

“If sentiment continues to deteriorate, there could be some price correction in the market.”

Beyond the Gulf, Egypt’s Blue Chip Index (.EGX30) It fell 0.6%.

Reporting by Ateeq Shariff in Bengaluru; Editing by Jonathan Otis

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