Gulf markets close mixed on growth worries
A woman walks through the Dubai Financial Market after Joe Biden won the U.S. presidency, in Dubai, United Arab Emirates November 8, 2020. REUTERS/Christopher Pike
May 26 (Reuters) – Stock markets in the Gulf ended mixed on Thursday, on persistent concerns over slowing economic growth and after the latest U.S. Federal Reserve minutes confirmed its intent to tighten monetary policy quickly.
Saudi Arabia’s benchmark index (.TASI) dropped 0.5%, with the kingdom’s biggest lender Saudi National Bank (1180.SE) losing 1.6%, while Dr Sulaiman Al-Habib Medical Services (4013.SE) retreated 1.9%.
Shares of oil behemoth Saudi Aramco (2222.SE), which is at par with Apple Inc (AAPL.O) as the world’s most valuable company, were down 0.7%.
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Aramco has approached motor oil and lubricant maker Valvoline Inc (VVV.N) to buy its segment catering to commercial customers, Reuters reported on Wednesday, citing sources familiar with the matter. read more
However, the Saudi index recorded its first weekly gain in three weeks.
In Abu Dhabi, the index (.FTFGI) lost 0.2%, hit by a 1.5%, fall in the United Arab Emirates’ largest lender First Abu Dhabi Bank (FAB.).
However, the index’s losses were limited by gains at telecoms firm e& (ETISALAT.), which advanced 1.1%, after it launched region’s first telco non-fungible token (NFT) collection.
Dubai’s main share index (.DFMGI) finished 1.2% higher, ending three sessions of losses, boosted by a 3.1% jump in Emirates NBD Bank (ENBD.DU).
Dubai’s Emirates Central Cooling Systems Corporation (Empower) has invited investment banks to pitch for roles in its planned initial public offering, which is slated for later this year, two sources with direct knowledge of the matter said. read more
Sheikh Maktoum Bin Mohammed, Dubai’s deputy ruler, in November announced plans to take 10 government-linked companies public to boost stock market activity. The ruler named Empower as part of those plans in December.
On the other hand, the Dubai index posted its seventh week of losses in eight.
Outside the Gulf, Egypt’s blue-chip index (.EGX30) declined 0.5%, with Abu Qir Fertilizers (ABUK.CA) falling 2.8%.
Investors reacted to the developments in the United States, while international investors remained cautious to a certain extent, affecting the Egyptian market’s potential, said Fadi Reyad, market analyst at CAPEX.com.
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Reporting by Ateeq Shariff in Bengaluru; Editing by Shinjini Ganguli
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