Gulf bourses end broadly lower as dolorous lenders pressure stocks

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Gulf bourses end broadly lower as dolorous lenders pressure stocks

A gauge of Gulf stock indices had winded down the Sunday market broadly lower, while UAE bourses and Egyptian blue-chips had led the downfalls as New York-based global credit rating agency Moody’s had downgraded ratings of a number of UAE lenders and Egypt’s main bourse had languished heavy downpour following an en-masse sell-off wave of its blue chip stocks.

In point of fact, later last week, Moody’s was quoted saying that it had downgraded eight Emirati lenders’ outlooks to “negative” from an earlier “stable” due to a steady rise in pandemic cases in the Middle East, which eventually had shattered investors’ morale and led to a broad-based sell-off wave.

Gulf stocks gobble up losses amid steady rise in pandemic cases

If truth is to be told, Sunday’s Gulf bourses’ decline was almost entirely prodded by a sharp rise in pandemic cases, while Moody’s latest downgrading of eight UAE lenders’ credit rating outlooks had added to further strains.

Meanwhile, Dubai’s main index ended the day 0.9 per cent lower, mostly galvanized by a 3.9 per cent header of Emirates NBD that remarked its biggest intra-session loss since May, while Abu Dhabi’s main index rounded off the session down by 0.2 per cent, largely affected by a 0.6 per cent decline in Abu Dhabi Commercial Bank.

On top of that, despite a dazzling opening of the day, Saudi’s main index ended the day down by 0.1 per cent following a late-afternoon sell-off wave, while the Saudi’s state-backed oil giant Aramco shares’ prices fell by 0.6 per cent.

Elsewhere in the Gulf, Qatari bourse fell by 0.4 per cent, while Bahrain had curtained off the day almost dithered. Egypt’s main index had faced off a faltering of 0.3 per cent following a sell-off of its blue-chip stocks over frets of pandemic-led drawdown in revenues.

Nonetheless, Omani and Kuwaiti bourses had been the only gainers on Sunday’s Mideast market with Oman and Kuwait adding 0.3 per cent and 0.7 per cent respectively.