Gulf echoes global markets’ doom on corona virus fear


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Gulf echoes global markets’ doom on corona virus fear

On Sunday, the 2nd of February 2020, a bundle of Gulf bourses had been under tremendous pressure following an abrupt fall of crude oil futures’ price over demand concerns, as a coronavirus outbreak in China which killed more than 300 people in last two weeks and spread in to dozens of countries including Germany, France, US, UK, India, Singapore and Indonesia, has been signalling a havoc-scale slump in demands and business investments.

Apart from a corona virus casting caustic shadows over the global economy, a bunch of softer-than-anticipated corporate earnings’ in Saudi had hit the Saudi’s main stock index. Besides, although China had bolstered measures and announced an fiscal injection of $174 billion on Monday’s (February 3rd) market opening after an extended Lunar New Year holiday, Mainland Shanghai’s SSE Composite lost more than 9 per cent in pre-market trading, while on Sunday’s (February 3rd) Gulf market closure, Saudi fell by 1.3 per cent following losses of financials including large lenders such as Al-Rajhi and Alinma Bank that reported an annual profit decline of 11.3 per cent.

Concomitantly, Saudi Aramco hit a new record closing low of $9.05 per share. However, corona virus impact was relatively muted outside major bourses as Bahrain gained 0.1 per cent, while Dubai’s main index wrapped up the day 0.9 per cent lower, Qatar curbed out 0.77 per cent of earlier gains and Abu Dhabi shrugged off 0.8 per cent on Sunday’s (February 3rd) Gulf market wind down.