logo

MIDEAST STOCKS-Financials drag major Gulf markets lower

PUBLISHED: Tue, 13 Apr 2021 13:10:48 GMT

Share

By Ateeq Shariff April 13 (Reuters) – Major stock markets in the Gulf ended lower on Tuesday, as financial shares dropped after the International Monetary Fund warned of rising debt risks in the coronavirus-hit Middle East. The IMF said on Sunday that countries in the Middle East and Central Asia need to curb their financing requirements, as a surge in government debt, exacerbated by the pandemic, threatens recovery prospects. Lower demand and a slump in commodity prices eroded state finances last year. In the Middle East and North Africa, fiscal deficits widened to 10.1% of GDP in 2020 from 3.8% of GDP in 2019. Saudi Arabia’s benchmark index dropped 0.7%, weighed down by a 1% decline in Al Rajhi Bank and a 1.7% decrease in Saudi National Bank. In Dubai, the main share index finished 0.8% lower, with its top lender Emirates NBD and Dubai Islamic Bank (DIB) losing 1.7% each. DIB, the largest Islamic lender in the United Arab Emirates, has hired banks to arrange a planned benchmark issuance of U.S. dollar-denominated Additional Tier 1 sukuk, a document showed on Monday. The Abu Dhabi index declined 1.2%, dragged down by a 2.2% fall in First Abu Dhabi Bank, the country’s largest lender, and a 5% slide in Abu Dhabi Islamic Bank as the stock went ex-dividend. In Qatar, the index eased 0.2%, hit by a 1.5% fall in Qatar Islamic Bank. Outside the Gulf, Egypt’s blue-chip index retreated 1.4%, as most of the stocks on the index were in negative territory including market heavyweight Commercial International Bank, which was down 2.2%. Egypt’s current account deficit widened to $4.8 billion in October-December from $3.2 billion in the same period in 2019, according to central bank figures released on Monday. SAUDI ARABIA rose 0.7% to 9,838 ABU DHABI dropped 1.2% to 6,019 DUBAI down 0.8% to 2,566 QATAR lost 0.2% to 10,481 EGYPT down 1.4% to 10,306 BAHRAIN added 0.4% to 1,468 OMAN fell 0.2% to 3,718 KUWAIT declined 0.7% to 6,498 (Reporting by Ateeq Shariff in Bengaluru; editing by Jonathan Oatis)

(c) Copyright Thomson Reuters 2021. Click For Restrictions – https://agency.reuters.com/en/copyright.html


Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.