Most Gulf stock markets edged down on Sunday after oil prices fell on the week and fighting in Yemen intensified. Egypt was also weak following poor balance of payments data. Despite a rally on Friday, Brent crude fell 3.6 percent last week as OPEC left its output unchanged.
Yemen's dominant Houthi group and its allies fired a Scud ballistic missile into Saudi Arabia, which the kingdom said it had shot down on Saturday, in a major escalation of two months of war. Fighting also intensified along the border between the two countries.
Retail investors in the Gulf, and especially in Saudi Arabia, have reacted negatively to the conflict and the latest developments could further weigh sentiment.
The main Saudi index edged down 0.8 percent as most blue chips fell and petrochemicals giant Saudi Basic Industries slipped 0.4 percent. Major lenders Al Rajhi Bank and National Commercial Bank fell 1.3 percent each.
Retailer United Electronics slipped 0.3 percent, having tumbled as much as 3.9 percent during the day. The firm said on Sunday it planned to buy 51 percent stake in International Regions Company, a fashion retailer for brands such as DKNY, Kenzo, Max Mara, Koton, Jimmy Choo, and Ecco.
United Electronics did not disclose the price but said one of its board members owned a stake in the target company.
Qatar's bourse slid 0.9 percent, extending a bout of weakness which began last Thursday, after a US law enforcement official said the FBI's investigation of FIFA included the award of World Cup hosting rights to Russia and Qatar.
But the biggest drag on the benchmark was conglomerate Industries Qatar whose petrochemicals business is sensitive to oil prices. The stock dropped 3.2 percent.
Dubai's index fell 1.1 percent with most stocks in the red. But Amlak Finance, which accounted for almost a half of total traded value in the emirate, surged its daily 15 percent limit for the third session in a row.
Amlak resumed trading on Tuesday after being suspended for nearly six years because of debt problems. Dubai's index has roughly doubled in that time.
Abu Dhabi edged down 0.7 percent as blue chips First Gulf Bank and Etisalat lost 1.3 and 0.4 percent respectively.
Egypt's bourse fell 0.6 percent after data showed the country's current account deficit registered $4.1 billion in the three months to March versus a surplus of $322.9 million in the same period a year earlier, according to Reuters calculations.
Some investors may also have sold stocks to free up cash for the Emaar Misr flotation this month. The subsidiary of Dubai's Emaar Properties aims to raise up to 2.55 billion pounds ($334 million) in the largest initial public offer on the Cairo exchange since 2007.
Comments
Comments are closed.