Gulf stocks fall as inflation fears hit sentiment

June 7 (Reuters) – Middle Eastern stock markets ended lower on Tuesday, trailing global equities, as rising inflation and a looming economic slowdown dampened investor sentiment.

MSCI’s benchmark for global stocks (.MIWD00000PUS) fell 0.3% to 650 points at 0843 GMT, weighed by early morning losses in Europe and earlier weakness in Asian markets.

Saudi Arabia’s main stock index (.TASI) fell 1.2%, falling the most among its Gulf peers, with Al Rajhi Bank (1120.SE) down 1.9% and the biggest lender of the kingdom, Saudi National Bank (1180.SE), down 2.1%.

Join now for FREE unlimited access to Reuters.com

Register

The Saudi stock market remains exposed to selling pressure and has been trailing other markets in the red, said Eman AlAyyaf, CEO of EA Trading, adding that the market could see further price corrections like last month.

Dubai’s main stock market index (.DFMGI) fell 0.5%, with major lender Emirates NBD (ENBD.DU) down 1.4% and Emirates Integrated Telecommunications (DU.DU) down 1.2%.

“The Dubai stock market fell as investors started selling again after the latest rally,” AlAyyaf added.

In Abu Dhabi, the index (.FTFADGI) lost 0.3%, extending the losses to the fifth consecutive session.

Petrochemical maker Borouge (BOROUGE.AD) fell 1.9% and lender Abu Dhabi Commercial Bank (ADCB.AD) fell 2%.

Separately, Abu Dhabi state fund Mubadala and a fund managed by European buyout firm EQT have agreed to buy Envirotainer for an enterprise value of around €2.8 billion. Read more

The Qatari index (.QSI) fell 0.1%, pressured by a 3% decline in the Gulf’s largest lender, Qatar National Bank (QNBK.QA) and a drop in 1.5% of Commercial Bank (COMB.QA).

While Gulf International Services (GISS.QA) jumped 10% after the company announced an interim agreement with Manaya Holding Group for a possible merger of its Amwaj unit with Shaqab.

Outside the Gulf, Egypt’s blue chip index (.EGX30) gained 0.6%, while Commercial International Bank Egypt (COMI.CA) gained 0.6%.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Mohd Edrees in Bengaluru; Editing by Amy Caren Daniel

Our standards: The Thomson Reuters Trust Principles.

About Vicki Davis

Check Also

The Rupee gains 45 paise to close at 81.47 against the US Dollar

The rupee appreciated 45 paise to close at 81.47 (provisional) against the US dollar on …