Most Gulf markets in red tracking Asian shares, oil lower

17 Jan, 2023

Most Gulf stock markets fell in early trade on Tuesday, tracking Asian shares and oil prices lower, with Qatar leading declines in the region.

The Qatari index dropped 2.7%, as almost all the stocks on the index were in the negative territory including Qatar Islamic Bank, which tumbled 4.1% despite reporting an increase in 2022 profits.

MSCI’s gauge of Asia Pacific stocks outside Japan increased its losses to stand down 0.65% at 0535 GMT, after China reported weak fourth-quarter economic data, although investor expectations for a strong rebound in the country remained high, even as concerns increase that the global economy is heading for a recession.

Gulf bourses wobble

Saudi Arabia’s benchmark index dropped 0.7%, hit by a 0.8% drop in oil giant Saudi Aramco.

Oil prices - a key catalyst for the Gulf’s financial markets – were mixed after China posted its weakest annual economic growth in nearly half a century, with its late-2022 U-turn in COVID-19 policy underpinning hopes of a recovery in the country’s fuel demand this year.

Data released on Tuesday also showed China’s oil refinery output in 2022 had fallen 3.4% from a year earlier, its first annual decline since 2001, although daily December oil throughput rose to the second-highest level of 2022.

In Abu Dhabi, the index eased 0.1%.

Dubai’s mains share index gained 0.6%, led by a 4.3% jump in Emirates Central Cooling Systems and a 2.6% increase in utility firm Dubai Electricity and Water Authority.

The United Arab Emirates’ energy minister Suhail al-Mazrouei said on Monday that oil markets were balanced.

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