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Thursday, August 11, 2022

Gulf markets slip after oil hits fresh lows

Gulf markets slip after oil hits fresh lowsDUBAI: Most stock markets in the Gulf edged down in early trade on Sunday after oil prices hit fresh multi-month lows.

Crude oil dipped on Friday, posting a sixth straight week of losses, as the approaching end of the U.S. summer driving season suggested a growing surplus in gasoline supply.

Although most listed companies in the Gulf have no direct exposure to oil, government spending fuelled by oil revenues is the main driver of economic growth in the region.

Dubai’s index fell 0.7 percent with most stocks in the red. Developer DAMAC Properties, the most traded stock, dropped 2.2 percent after surging last week on strong quarterly profit and the announcement of its first cash dividend.

Another property-related stock that rose sharply last week, Islamic mortgage lender Amlak Finance, fell 2.6 percent.

Abu Dhabi’s bourse slipped 0.05 percent and developer Aldar Properties, down 1.1 percent, was the main drag.

Qatar edged down 0.3 percent and heavyweight Industries Qatar, whose petrochemicals business has suffered from oil’s plunge, fell 1.2 percent.

Kuwait’s market slipped 0.1 percent and Oman’s index was flat, although Renaissance Services dropped 2.3 percent after it said it would continue repurchasing its mandatory convertible bonds.

It bought back the first tranche for a price of 0.151 rials ($ 0.39), it said in a statement, which is a premium to the bond’s last quoted price of 0.145 rials.

Copyright Reuters, 2015

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