Gulf bourses pummel amid oil futures' rout

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Gulf bourses pummel amid oil futures' rout

On Sunday, a gauge of Gulf bourses had winded up the day in a downbeat tenure that followed a sharp drop in crude oil futures’ prices on Friday’s commodity market closure, as frets of a sluggish economic recovery from the pandemic induced rout had spurred up concerns of a demand crunch in global crude oil market despite robust factory activities data from Beijing and Washington.

In point of fact, US crude fell as much as 3.9 per cent and Brent crude futures faltered 3.2 per cent on Friday, which in turn had led to a tottering of the oil-dependent Gulf bourses.

Gulf bourses ebb off as oil demand outlook simmers

Besides, as global commodity markets had been bracing for another leg of mass-scale downturn in crude oil futures amid a resurgence of pandemic outbreak in the United States alongside a second wave of the outbreak in Europe, Saudi’s main index had dipped 0.3 per cent, mostly catalysed by the losses of SABIC (Saudi Basic Industries Corp.), the world’s fourth-largest petrochemical company and Riyad Bank, which had faltered 1.9 per cent and 1.7 per cent respectively.

Apart from that, main index of Dubai had shrugged off 1.1 per cent, in part due to a 2 per cent drop of Emaar Properties alongside a 0.9 per cent fall in Emirates NBD shares’ prices, while Abu Dhabi shed 0.6 per cent following a 0.9 per cent decline of First Abu Dhabi Bank amid market whispers that Abu Dhabi had been planning to acquire the ailing Egyptian unit of Lebanese bank Audi.

Elsewhere in the Mideast, the Qatari bourse had shredded off 1.2 per cent having been muddled by the losses of Qatar Petrochemical Industries Company, while outside the Gulf Egyptian blue-chip index fell over 1 per cent, mostly impacted by a 2.8 per cent drop of Talaat Mostafa alongside a 2.6 per cent decline of Cleopatra Hospital.