Agencies. 20 Sep.
Most stock markets in Gulf region kneeled down on Monday early trade, replicating weakness in Asian shares and oil prices, with Dubai leading declines.
Oil dropped more than $1 a barrel to below $75 on Monday as rising risk aversion weighed on stock markets and boosted the US dollar, while more US Gulf oil output came back online in the wake of two hurricanes.
Asian shares skidded ahead of a week packed with global central bank meetings, with Evergrande’s troubles adding to growing concerns about the health of China’s economy after Beijing’s recent crackdown on tech firms had haunted the region.
Oil prices extended losses from the previous session after energy companies in the US Gulf of Mexico resumed production after back-to-back hurricanes in the region shut output.
Dubai’s main share index dropped 0.8%, as most of the stocks on the index traded in the red including blue-chip developer Emaar Properties, which declined 1.2%.
Far East stock markets and the strong dollar are affecting oil,” said Tamas Varga of oil broker PVM. “Nonetheless, unless all hell breaks loose, the positive sentiment ought to prevail.”
Brent crude fell 76 cents, or 1%, to $74.58 at 0815 GMT, having dropped as low as $74.26 earlier in the session. US West Texas Intermediate (WTI) declined 89 cents, or 1.2%, to $71.08.
A stronger dollar makes US dollar-priced oil more expensive for holders of other currencies and generally reflects higher risk aversion, which tends to weigh on oil prices.
Abu Dhabi’s benchmark index lost 0.6%, on course to extend losses from the previous session, with the country’s largest lender First Abu Dhabi Bank falling 0.6%.
The United Arab Emirates central bank sees increased risks of illicit financial flows emerging from the pandemic, including money-laundering and terrorism financing, it said in a report published on Sunday.
The bank identified fraud risks linked to COVID-19, including companies or individuals submitting false claims to qualify for government stimulus measures.
The report comes as the central bank steps up efforts to combat illicit financial flows.
Saudi Arabia’s benchmark index slipped 0.5%, hit by a 0.5% fall in Al Rajhi Bank and a 1.4% decline in Saudi Basic Industries Corp (SABIC).
SABIC, the world’s fourth-biggest petrochemicals firm, said on Sunday its joint venture project with ExxonMobil in the US Gulf Coast has started commissioning activities and preparing for an initial startup.
The Qatari index dipped 0.4%, with Qatar Islamic Bank losing 0.9%.
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