MARKET REPORT US trade disputes rattle investors

Middle East stock markets mostly fell yesterday on concerns that trade disputes involving the United States could hurt the global economy, although Saudi Arabia rebounded slightly from a threeday losing streak.

The trade jitters prompted a 0.9 per cent slide in MSCI’s emerging markets index, which deterred buying of stocks in the Middle East.

“The global economic situation is worrying for the markets – wealth managers have been reducing exposure to equities over the past month. That’s why negative sentiment is spreading across the region,” said Mazen Al Sudairi, head of research at Al Rajhi Capital in Riyadh.

Dubai’s index fell 0.4 per cent in a broad-based decline with losers outnumbering gainers by 22 to seven. Loss-making

Jitters prompted a 0.9% slide in MSCI’s emerging markets index, which deterred buying in the Middle East

construction firm Drake & Scull slipped 1.6 per cent to a record low.

In Abu Dhabi, the index edged down only 0.1 per cent, partly because of a 4.3 per cent rise by Union National Bank.

Bloomberg quoted unnamed sources as saying Abu Dhabi authorities were exploring the possibility of merging UNB, Abu Dhabi Commercial Bank and privately held Al Hilal Bank. ADCB shares edged up 0.6 per cent.

In Qatar, the index slid 0.7 per cent as the most heavily traded stock, real estate firm Ezdan Holding, tumbled 5.5 per cent.

Saudi Arabia’s index, however, rose 0.4 per cent as the biggest stock, Saudi Basic Industries, climbed 0.6 per cent to 125.60 riyals, rebounding from technical support on its 100day average, now at 123.32 riyals. The stock has held above the average since November last year.

Saudi Steel Pipes jumped 7.7 per cent, bringing its gains in the last two trading days to 18 per cent. Investors are hoping for a fresh strategic investment in the firm.

Late last week SSP said a deal between a shareholder group and a potential strategic investor had been extended for one month.