Gulf stocks fell collectively yesterday, under pressure from falling energy prices on Friday and fears that major central banks announcing large interest rate hikes aimed at curbing inflation could lead to a global recession.
US and European markets tumbled on Friday on fears of a recession amid sharp interest rate hikes.
Crude oil prices, the main catalyst for Gulf financial markets, fell about 5% to an eight-month low on Friday, and the US dollar hit its strongest level in over two decades amid fears that higher interest rates would have pushed economies into recession and therefore decreased demand for oil.
According to “Reuters”, Qatar’s main index closed 1.5% lower at 12,452 points, posting losses for the second consecutive session, with 18 shares down on 20 shares of the index, including Petrochemical Industries Qatar. whose share fell by 3.2 percent cents.
The Kuwait index fell 2.5% to 8,122 points. Shares of the National Bank of Kuwait fell by 1.7%, Kuwait Finance House by 2.8%, Agility by 6.9%, Zain by 1% and National Industries Group by 5.5%. Shares of National Investments fell 10.3%, Al Imtiaz Holding Group fell 8.2%, Gulf Cables by 7.3% and Kuwait Real Estate by 7.1%.
The Muscat index fell 0.3% to 4,458 points. The Bahrain index fell 1.4% to 1,901 points.
In Cairo, the Egyptian stock exchange’s leading index fell 0.3 percent to 9,895 points, impacted by a 2.1 percent decline in Commercial International Bank shares.
Daniel Taqi El-Din, CEO of BD Swiss MENA, said investor sentiment is increasingly heading towards risk aversion, which could push the market further down.
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