Major Gulf stocks retreat as global lockdowns accelerate fears of a severe recession


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Major Gulf stocks retreat as global lockdowns accelerate fears of a severe recession

On Sunday, the 5th of April 2020, a majority of Gulf stock exchanges had wrapped up the day lower with Dubai stock exchange leading the losses as fears of a severe recession amid global-scale lockdown measures had been keeping the investors at their heels.

As a matter of fact, it was an IMF (International Monetary Fund) remark that was later echoed by the World Bank which appeared to have shaped up Sunday’s (April 5th) traders’ sentiment in the Gulf bourses, as IMF was quoted saying late on Friday (April 3rd) that the lockdown measures alongside the pandemic itself had alienated the trade allies and paralyzed the economy all over the world, while the World Bank had confirmed that the global economy had been in a recession and the money markets should brace for a global recession which could be “much worse” that the great financial depression of 2007-2009.

Citing statistics, Dubai’s main stock index ended down the day 2.4 per cent lower following a 4.8 per cent plunge of Dubai Islamic Bank, while Abu Dhabi dwindled 2.2 per cent, almost entirely plummeted by a 4.8 per cent drag of UAE’s largest lender First Abu Dhabi Bank.

Besides, Saudi’s main index ended the day almost flatlined, while Qatari bourse had rounded off the day 0.3 per cent higher. Outside the Gulf, the Egyptian bourse had winded up Sunday’s (April 5th) market down by 1 per cent.