Most Gulf indexes extend losses

Most Middle East stocks fell yesterday, extending the previous session’s sharp sell-off triggered by a spike in the number of coronavirus cases outside China. The death toll from the virus in Iran rose to 16, the highest outside China, while other hard-hit nations including South Korea and Italy accelerated emergency measures to curb the spread of the epidemic.

Dubai’s share index closed down 0.9 per cent with Emaar Properties losing 3.2 per cent and Air Arabia falling 3.4 per cent. The UAE yesterday suspended all flights to and from Iran for at least a week due to the spread of the virus in the country. Air Arabia, whose main base is at Sharjah International Airport, is the UAE’s only listed airline.

Saudi Arabia’s benchmark index reversed course to close 0.1 per cent higher. Jabal Omar Development jumped 6.8 per cent and Samba Financial Group added 1.6 per cent. Saudi Aramco rose 0.3 per cent.

The International Energy Agency’s outlook on global oil demand growth has fallen to its lowest level in a decade, IEA executive director Fatih Birol said yesterday, adding it could be reduced further due to the impact of the coronavirus outbreak. Lower prices and disruptions to crude exports could impact fiscal balances in countries reliant on oil income. Brent crude had slipped 26 cents to $56.04 a barrel by 1105 GMT, giving up earlier gains. In Abu Dhabi, the index edged up 0.1 per cent, helped by a 0.9 per cent gain in the country’s largest lender First Abu Dhabi Bank.

Outside the Gulf, Egypt’s blue-chip index dropped 0.9 per cent. Commercial International Bank and EFG Hermes fell 2.2 per cent and 3.3 per cent, respectively.

Among Asian markets, Japan’s Nikkei share average fell to a four-month low, as investors reduced their equity holdings on their first trade after a long weekend and as a spike in coronavirus cases beyond mainland China threatened the global economy.

Dubai’s share index closed down 0.9% with Emaar Properties losing 3.2% and Air Arabia falling 3.4 %