Saudi drags major Gulf bourses lower as Abu Dhabi gains

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Saudi drags major Gulf bourses lower as Abu Dhabi gains

On Sunday, a slew of Gulf bourses had gobbled down hefty losses with Saudi Arabia’s main index leading the decline, however, Abu Dhabi’s benchmark index had averted a broad sell-off and closed the session in an affirmative territory.

In point of fact, in the day’s Gulf market, most major bourses had opened up the session in a mixed tenure with Saudi having been plunged as much as 0.5 per cent as dairy business Almarai Company had beaten a hasty retreat following a 25 per cent decline in the company’s second-quarter net profit, while as the day progressed, major Mideast bourses but Abu Dhabi had succumbed into the red inks.

With an upsurge in Delta variant prompting G20 leaders to warn about a probable delay in global economic recovery from the pandemic’s fiscal consequences, Gulf investors seemed to have taken a cautious approach and ramped up their bet on defensives such as healthcare and cyclicals, but, blazing questions over the pace of global economic recovery had capped the gains despite a multi-year high crude oil price, the lifeblood of a majority of Gulf economies.

Gulf stocks close lower as Saudi leads decline

Citing statistics, in the day’s Gulf market wind-down, Saudi Arabia’s benchmark index dropped as much as 1.3 per cent with Al Rajhi Bank and Saudi National Bank shedding 1.7 per cent and 1.8 per cent respectively.

Besides, Dubai’s main index plunged 0.7 per cent following a 2.2 per cent slid in Emirates NBD alongside a 0.7 per cent drop in Emaar Properties, while Abu Dhabi’s main index gained 0.4 per cent, snapping up three straight session-long losing streak with cement company Ras Al Khaimah Cement soared 15 per cent.

Outside the Gulf, Egypt’s blue-chip index lost 0.3 per cent with the country’s leading lender Commercial International Bank falling 0.4 per cent. Elsewhere in the Gulf, Qatari index shed 0.5 per cent with petrochemical maker Industries Qatar fell 1.3 per cent.