Major stock markets in the Gulf retreated in early trade on Thursday following a decline in oil prices, although the Abu Dhabi index bucked the trend.
Saudi Arabia’s benchmark index dropped 0.5%, weighed down by a 1% fall in Al Rajhi Bank and a 1.1% decline in the country’s biggest lender Saudi National Bank.
Oil prices – a catalyst for the Gulf’s financial markets – eased, as concerns over weak demand in China, the world’s largest crude importer, and expectations of a nearing ceasefire deal in the Middle East overcame gains in the previous session after draws in U.S. inventories.
This year, China’s oil imports and refinery runs have trended lower than in 2023 on weaker fuel demand amid sluggish economic growth, according to government data.
Major Gulf markets mixed; Saudi extends losses
Dubai’s main share index lost 0.4%, with sharia-compliant lender Dubai Islamic Bank falling 1.3%.
Among other losers, Parkin Company, which oversees public parking operations in the Emirates, declined 3% ahead of its earnings announcement on Friday.
The Qatari benchmark shed 0.6%, with Qatar Islamic Bank falling 1.5%.
In Abu Dhabi, the index edged 0.1% higher, helped by a 0.6% increase in conglomerate International Holding.
However, the United Arab Emirates’ biggest lender by assets, First Abu Dhabi Bank, fell 1.1% after reporting a 1% rise in second quarter net profit.
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