Most stock markets in the Gulf ended lower on Monday, extending losses from the previous session as the collapse of Silicon Valley Bank raised fears of a fresh financial crisis.

The failures in the U.S. banking sector continue to weigh on GCC stock markets and add to the uncertainties around U.S. monetary policy, said Fadi Reyad, Chief Market Analyst at CAPEX.com.

“Energy price movements remain under observation as well and could add to the pressures.”

The Federal Reserve and U.S. Treasury on Sunday announced a range of measures to stabilise the banking system and said depositors at SVB would have access to their deposits on Monday.

Despite their efforts, markets remained nervous.

Saudi Arabia’s benchmark index dropped 0.8%, weighed down by a 1.5% fall in Al Rajhi Bank and a 0.8% decrease in Retal Urban Development Co.

Major Gulf bourses subdued on SVB jitter; Saudi edges up

In the kingdom, all banking shares were in red including Arab National Bank, which was down 5.9%.

Dubai’s main share index closed 0.9% lower, with blue-chip developer Emaar Properties retreating 2.9%.

In Abu Dhabi, the index was down 1.6%.

Oil prices - a key catalyst for the Gulf’s financial markets - fell $4 as the collapse of Silicon Valley Bank weighed, but a recovery in Chinese demand provided support.

Elsewhere, the benchmark Qatar index declined 1.5%.

Outside the Gulf, Egypt’s blue-chip index slid 3.1%, dragged down by a 3.9% tumble in top lender Commercial International Bank.

========================================= SAUDI ARABIA    down 0.8% to 10,305 ABU DHABI       fell 0.7% to 9,758 DUBAI           dropped 0.9% to 3,354 QATAR           declined 1.5% to 10,408 EGYPT           lost 3.1% to 15,439 BAHRAIN         eased 0.1% to 1,909 OMAN            was up 0.7% to 4,894 KUWAIT          decreased 0.3% to 8,059=========================================