On Sunday, a slew of major Gulf indices had winded up the session in a red sea of Nile with Qatari index toppling for a third straight session in a row. In the matter of the fact, in the day’s fall in major Gulf bourses came forth despite a nearly 8.0 per cent rise in oil prices last week, which is highly unusual.
Traditionally, the Gulf investors’ morale is closely linked to oil prices. However, while as most gulf bourses are pegged in US Dollar and closely followed the monetary policy in the US, last week’s US inflation data appeared to have taken a toll on investors’ morale.
Thursday’s Government data had unveiled that the US Consumer prices might just be slowing down, while latest ISM survey data had orchaestrated a perilous picture ahead for the US economy, eventually sending shockwaves to market participants.
Gulf bourses fall as recession frets looms large over the US economy
Citing statistics, in the day’s Gulf market wind-down, the Kingdom of Saudi Arabia’s benchmark index fell 0.2 per cent, mostly wounded by a 1.0 per cent plunge in the shares’ prices of Riyad Bank.
Surprisingly, the Saudi petroleum giant Saudi Basic Industries Corp had been met with a decline of 0.7 per cent. Outside the Gulf, Egypt’s blue-chip index that involves 29 stocks, added 0.1 per cent, while El Sewedy Electric climbed as much as 5.3 per cent.
Elsewhere in the Gulf, the Qatari bourse dipped 0.3 per cent, falling for a third straight session in a row, while Bahrain rose by 0.1 per cent. Besides, the Omani bourse edged 0.2 per cent lower, while Kuwait shrugged off 0.3 per cent.