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Global stock slide pulls down most GCC markets

Global stock slide pulls down most GCC markets

The Kuwait bourse fell back after seven straight gains

Most Gulf stock markets dropped on Monday, mirroring losses in global stocks after strong US job gains dampened expectations the Federal Reserve will deliver a large rate cut.

The Kuwait bourse fell back after seven straight gains triggered by MSCI decision to upgrade Kuwaiti equities to its main emerging markets index.

Kuwait’s index decreased 0.3 per cent after rallying recently on expectations that the MSCI move would trigger billions of dollars of inflows in Kuwaiti stocks.

Kuwait has gained over 25 per cent year-to-date in anticipation of the MSCI move, outperforming its Gulf peers.

The Saudi index lost 0.3 per cent as market heavyweight Saudi Basic Industries was down 0.2 per cent and Al Rajhi Bank declined 0.1 per cent.

The market is still up over 12 per cent so far this year in a rally led by foreign investors.

Total ownership of Saudi stocks by foreign investors has increased to 7.47 per cent as of June 30, up from 4.67 per cent at the end of December, stock exchange data shows, reflecting increased active and passive fund flows this year.

Three of five tranches of Saudi stocks have joined the FTSE emerging market index this year and completed the first phase of joining the MSCI emerging market benchmark in May, with the second phase due in August.

The Abu Dhabi index slid 0.2 per cent hurt by a 0.1 per cent fall in country’s largest lender First Abu Dhabi Bank.

Bank Of Sharjah plunged 9.3 per cent after reporting a 38 per cent slump in first-quarter profit.

Dubai index increased 0.2 per cent led by a 1.1 per cent rise in its largest listed developer Emaar Properties.


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