Most stock markets across the Gulf closed in the red on Monday, dragged down by falling oil prices and investor unease over possible shifts in U.S.-China trade dynamics.
Brent crude prices dropped over 1% following the weekend announcement from OPEC+ to accelerate its oil production increases. The move raised fears of oversupply in a market already facing uncertainty around global demand.
Sources within OPEC+ told Reuters the group could fully phase out its voluntary output cuts by the end of October unless member nations boost compliance with their existing production quotas.
The Qatari stock index (.QSI) declined by 0.4%, with pressure coming from a 0.9% drop in Qatar Islamic Bank (QISB.QA) and a 1% slide in Industries Qatar (IQCD.QA), a major petrochemical company.
Abu Dhabi’s benchmark index (.FTFADGI) edged down 0.1%, while Saudi Arabia’s main index (.TASI) managed to reverse earlier losses and finish 0.1% higher. The gains were powered by a 6.5% surge in shares of Saudi Arabian Mining Company (1211.SE).
Dubai’s main index (.DFMGI) bucked the regional trend, rising 1% thanks to strong performances from key financial players. Top lender Emirates NBD (ENBD.DU) rose 3.1%, while Commercial Bank of Dubai (CBD.DU) climbed 6.9%.
“The Dubai market may maintain its upward momentum, supported by solid earnings and economic resilience,” said Joseph Dahrieh, Managing Principal at Tickmill. He pointed to April’s steady growth in the non-oil private sector and the fastest pace of employment growth in nearly a year.
Meanwhile, in the United States, former President Donald Trump said on Sunday that talks with multiple countries, including China, are underway, emphasizing that a fair deal with China remains a key priority.
Outside the Gulf, Egypt’s benchmark (.EGX30) dipped 0.4%, weighed down by a 2.7% drop in Egypt Aluminum Company (EGAL.CA), even though the firm reported an increase in nine-month profits.
