Gulf stocks gobble up losses; Saudi slumped to 2-month lows as Moody’s lowers outlook


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Gulf stocks gobble up losses; Saudi slumped to 2-month lows as Moody’s lowers outlook

On Sunday, the 3rd of May 2020, a gauge of Gulf stock indices had ebbed off, while Saudi led the tallies of losses after global credit rating agency Moody’s had lowered Saudi’s credit outlook to negative citing ongoing pressures from the pandemic amid a multi-year low crude oil price at an overflooded market.

Aside from that, investors’ optimism faced off further obstacles following last session’s gains after a growing number of Gulf nations had begun to adopt stiffer lockdown measures in order to contain the pandemic outbreak, as a fast few days of relaxations in shut down measures due to the Ramadan had witnessed a sharp rise in cases in the Mideast alongside Southeast Asia.

Meanwhile, as the Saudi Finance Minister was quoted saying on Saturday (May 2nd) that the Government would take strict measures in order to weather the pandemic storm “which might be very painful” for many businesses, Saudi’s main stock index fell by 5.7 per cent, marking up the index's largest intra-session loss since March 9th, while the Saudi state-backed oil giant Aramco shares were down by 5.2 per cent.

In Dubai, the Emirates’ stock index winded down the day 4 per cent lower on steep losses of defensives such as real estates, while the Abu Dhabi index dived 3 per cent following a 3.3 per cent decline of UAE’s largest bank, First Abu Dhabi.

Elsewhere in the Gulf, Qatari bourse had rounded off the day 0.9 per cent lower and Kuwait stock exchange fell by 2 per cent, while outside the Gulf, Egypt’s main index was hit with a whiplash of 3.3 per cent on financials’ losses.