A large number of Gulf markets are declining due to factors related to selling pressure and lower oil prices, which leads to a decline in financial markets.
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Gulf markets decline due to selling pressure and lower oil prices
Most of the Gulf markets fell today, Thursday, affected by selling pressures and the drop in oil prices, which pushed the financial markets to decline sharply.
Oil prices, a strong driver of Gulf financial markets, fell to $96.23 a barrel on fears of slowing demand following an increase in US crude and gasoline stocks led to prices falling to their lowest level in months in the previous session.
Oil prices rose in 2022 to their highest levels since 2008 and exceeded $139 a barrel in March following the United States and Europe imposed sanctions on Russia.
Prices fell below $100 a barrel on rising inflation and raising interest rates, which raised fears of a recession that undermines demand.
The Dubai index fell 0.5%, with Emirates NBD Bank dropping 2.2% and Emaar Properties dropping 0.9%.
In Abu Dhabi, the stock index fell 0.3 percent, affected by a 1.6 percent drop in First Abu Dhabi Bank shares.
The Qatar Stock Exchange ended the day’s trading down 0.1 percent, affected by the 2.6 percent drop in Mesaieed Petrochemical’s share. The Saudi stock index was stable at the close.
Outside the Gulf region, the leading stock index in the Egyptian Stock Exchange rose 5.3 percent to compensate for 16 percent losses incurred since the beginning of the year.
The Egyptian stock index recorded its lowest level in nearly six years last month, following the country faced pressure due to a sharp decline in foreign portfolio investment holdings and an increase in the costs of imports of important basic commodities.