Main Gulf bourses combined in early commerce on financial worries – thqaftqlm

Main Gulf bourses combined in early commerce on financial worries

April 27 (Reuters) – Main inventory markets within the Gulf had been combined in early commerce on Thursday as recession fears grew in United States.

U.S. client confidence dropped to a nine-month low in April as worries mounted, heightening the danger of the financial system falling into recession this yr.

Saudi Arabia’s benchmark index (.TASI) dropped 0.3%, heading in the right direction to snap a six days of positive aspects, with Al Rajhi Financial institution (1120.SE) dropping 1.7%. The financial institution reported income that had been decrease than final quarter though larger than the identical interval a yr in the past.

Traders are additionally apprehensive that additional potential rate of interest hikes by inflation-fighting central banks may sluggish financial development.

Most Gulf Cooperation Council international locations, together with Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. greenback and observe the Fed’s coverage strikes carefully, exposing the area to financial tightening on this planet’s largest financial system.

In Abu Dhabi, the index (.FTFADGI) gained 0.5%.

Oil costs – a key catalyst for the Gulf’s monetary markets – rose barely, discovering some help after heavy losses within the earlier two periods pushed by fears of a U.S. recession and a rise in Russian oil exports which dulled the affect of OPEC manufacturing cuts.

Dubai’s predominant share index (.DFMGI) added 0.4%, with its prime lender Emirates NBD (ENBD.DU) rising 1.9%.

Individually, the United Arab Emirates is promoting 1.1 billion dirhams ($299.6 million) of Islamic bonds denominated for the primary time within the native foreign money, state information company WAM mentioned, a transfer aimed toward deepening the nation’s Islamic finance markets.

The Qatari index (.QSI) eased 0.1%, with Doha Financial institution (DOBK.QA) declining about 4% after posting a decline in first-quarter revenue.

($1 = 3.6715 UAE dirham)

Reporting by Ateeq Shariff in Bengaluru
Modifying by Peter Graff

Our Requirements: The Thomson Reuters Belief Rules.

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