Little risk-taking ahead of Eid break

Gulf equity markets were mostly flat to lower on Thursday, lacking momentum ahead of a long holiday next week when markets will mostly be closed for Eid Al Adha.

In the absence of strong catalysts, Gulf stocks passively tracked emerging assets, which languished in bear market territory as the dollar held strong.

“Given a more nervous global backdrop for risk assets and an increase in volatility within emerging markets specifically, it’s unsurprising Gulf equities are softer,” said Akber Khan, senior director of asset management at Al Rayan Investment.

“Compounding this is the upcoming Eid holiday which retail and institutional investors are looking to de-risk ahead of.”

Investors are keen to book profits given the strong performance of some equity markets in the region, he added.

Qatar’s main index experienced the sharpest decline among its regional peers.

Qatari stocks are up more than 10 per cent so far this year, bolstered in recent months by its move to increase its foreign ownership ceiling to 49 per cent from 25 per cent.

The index was down 1.5 per cent yesterday, with Qatar Islamic Bank suffering the biggest decline at 4.6 per cent.

In Saudi Arabia, commodity and banking stocks led the declines on the Tadawul index, which was flat.

Saudi Basic Industries Corp, the world’s No 4 chemical maker, was down 0.7 per cent. Saudi Arabian Mining Company declined 2.5 per cent. Samba Financial Group and Banque Saudi Fransi declined 0.7 per cent and 0.2 per cent respectively.

There has been no significant impact from the depreciation of the Turkish lira on the results and quality of Saudi Arabian bank assets, a spokesman for Saudi banks was quoted as saying in a tweet.

Dubai’s index was slightly down, with blue-chip stocks mixed in trading. Dubai Islamic Bank, the emirate’s oldest Sharia-compliant lender, declined 1.2 per cent.

Emirates NBD, Dubai’s biggest lender, was down 1 per cent amid investor concerns about its deal in May to buy Turkey’s Denizbank for $3.2 billion.

Abu Dhabi’s benchmark rose 0.4 per cent. Abu Dhabi National Energy Company gained 6.2 per cent.