Emaar Properties shares down 4.9% as Gulf markets drop

Stock markets in the Gulf ended lower on Monday, in line with global equities as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a Covid-19 warning from Beijing added to concerns about global growth.

Dubai’s main share index retreated 2.7 percent, its biggest one-day fall in a month, dragged down by a 4.9 percent drop in blue-chip developer Emaar Properties.

The main index could see additional price corrections in the short term as expectations remained bearish, said Wael Makarem, senior market strategist at Exness.

In Abu Dhabi, the index lost 1.8 percent, with the United Arab Emirates’ largest lender First Abu Dhabi Bank

 falling 2.5 percent.

Among other stocks, Dana Gas tumbled 2.8 percent after the energy firm said that it was in active discussion with the Egyptian government to reach a deal on Block 6 North El Arish Concession.

The Qatari index closed 1.5 percent lower with almost all the stocks on the index in the red, including the Gulf’s biggest lender, Qatar National Bank, losing 2.1 percent.

According to Makarem, the market could see additional pressures if natural gas prices remain volatile.

“In this regard, the country is working on developing production capacity to benefit from current price levels and higher demand from Europe.”

Saudi Arabia’s benchmark index fell 2.2 percent, hit by a 2 percent decline in Al Rajhi Bank and a 3.7 percent retreat in Saudi National Bank.

Oil prices, a key catalyst for the Gulf’s financial markets, dropped almost $2 a barrel as a flare-up in Covid-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.

Outside the Gulf, Egypt’s blue-chip index was down 0.8 percent, with Madinet Nasr For Housing and Development sliding about 7 percent, to become the top loser on the index.   

Closing prices

• Saudi Arabia fell 2.2 percent to 12,053
• Abu Dhabi down 1.8 percent to 9,459
• Dubai lost 2.7 percent to 3,287
• Qatar dropped 1.5 percent to 12,718
• Egypt lost 0.8 percent to 10,015
• Bahrain declined 1 percent to 1,852
• Oman down 0.1 percent to 4,123
• Kuwait eased 0.4 percent to 8,225