Major Gulf exchanges follow global stocks, oil prices fall

Traders look at screens at the Bahrain Stock Exchange in Manama, Bahrain, February 7, 2018. REUTERS/Hamad I Mohammed

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June 2 (Reuters) – Major Gulf stock markets fell in early trading on Thursday, trailing oil prices and global equities lower, with the Dubai index poised for four sessions of gains.

The MSCI World Equity Index (.MIWD00000PUS), which tracks stocks from 50 countries, fell 0.81%, on widespread investor concern over high inflation and the threat of recession.

Saudi Arabia’s benchmark (.TASI) fell 0.5%, weighed down by a 1.2% decline in oil giant Saudi Aramco (2222.SE) and a 4% decline in Saudi Arabian Mining Company (1211.SE).

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Elsewhere, Sahara International Petrochemical Company (2310.SE) fell 1.7% after the company announced a three-week maintenance delay for the International Acetyl Company unit.

Crude prices, a key catalyst for the Gulf financial market, fell as investors took advantage of a recent rally ahead of a meeting of major producers later in the day.

The fall in oil prices accelerated after the Financial Times reported that Saudi Arabia could be ready to increase its oil production in the event of a sharp drop in Russian production.

In Abu Dhabi, shares (.FTFADGI) fell 0.2%, with conglomerate International Holding Company (IHC.AD) falling 0.4% and the UAE’s largest lender, First Abu Dhabi Bank, dropping 0.4%. 0.7%.

Dubai’s main stock market index (.DFMGI) fell 0.1%, weighed down by a 1% decline in Shariah-compliant lender Dubai Islamic Bank (DISB.DU) and a 0.8% decline in Emirates Integrated Telecommunications (DU.DU).

The Qatari index (.QSI) fell 0.2%, hit by a 1% drop in petrochemicals maker Industries Qatar (IQCD.QA).

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Reporting by Mohd Edrees in Bengaluru; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.


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Felix J. Dixon