Mideast Stocks: Most Gulf markets turn south as Credit Suisse woes roil markets
15/03/2023 14:08
By Ateeq Shariff
March 15 (Reuters) - Most stock markets in the Gulf gave
up early gains to end lower on Wednesday, tracking a decline in
global shares, as renewed unease gripped markets after Credit
Suisse's largest investor said it could not provide the Swiss
bank with more financial assistance.
Saudi National Bank 1180.SE — the kingdom's biggest lender
— acquired a stake of almost 10% last year after taking part in
Credit Suisse's capital raising and committed to investing up to
1.5 billion Swiss francs ($1.63 billion).
Banking shares, which have been battered following the
collapse of Silicon Valley Bank, resumed their sell-off as the
Credit Suisse stock lost almost a quarter of its value, dropping
to record lows.
Shares of Saudi National Bank retreated 2.7%, hitting their
lowest since February 2021.
The lender lost almost $25 billion in market value since
Oct. 27 after committing to invest in the embattled Credit
Suisse.
Saudi Arabia's benchmark index .TASI declined 1.6%,
dragged down by a 2.9% slide in oil giant Saudi Aramco 2223.SE
as the stock went ex-dividend, while Retal Urban Development Co
4322.SE fell 1.2%.
In Qatar, the index .QSI concluded 1% lower, as most of
its constituents were in the negative territory, including Qatar
International Islamic Bank QIIB.QA , which was down 5.8%.
The Abu Dhabi index .FTFADGI fell 0.7%.
Oil — a key catalyst for the Gulf's financial markets
—extended losses, with Brent crude hitting a three-month low as
unease over Credit Suisse spooked world markets, offsetting
hopes of a Chinese oil demand recovery. O/R
Dubai's main share index .DFMGI , which advanced more than
1% in early trade, finished 0.2% higher, ending its six sessions
of losses.
A shift in global sentiment after the fears that emerged
from the fall of U.S. banks could lead the Dubai market into a
recovery phase as investors return to the market, said Ahmed
Negm, head of market research MENA at XS.com.
"At the same time, traders will remain attentive to the
developments in global markets and central bank decisions this
week and the next."
Outside the Gulf, Egypt's blue-chip index .EGX30 plunged
4.2%, with investment bank EFG Hermes HRHO.CA diving more than
12%.
SAUDI ARABIA .TASI lost 1.6% to 10,049
ABU DHABI .FTFADGI fell 0.7% to 9,525
DUBAI .DFMGI added 0.2% to 3,310
QATAR .QSI dropped 1% to 10,114
EGYPT .EGX30 lost 4.2% to 14,724
BAHRAIN .BAX eased 0.4% to 1,899
OMAN .MSX30 down 0.6% to 4,898
KUWAIT .BKP gained 0.9% to 7,900
($1 = 0.9214 Swiss francs)
($1 = 3.7555 riyals)
(Reporting by Ateeq Shariff in Bengaluru; Editing by Shilpi
Majumdar)
((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))