Cairo: Egypt and Kuwait stocks retreated, leading a drop in Middle East markets, on concern Europe's debt crisis will slow the global economic recovery and on speculation second-quarter earnings in the Gulf may disappoint.
Egypt's EGX 30 Index lost 0.8 per cent to 6,255.46, the lowest intraday level since June 15, as of 12.18pm in Cairo, as Commercial International Bank Egypt SAE declined. Kuwait's gauge slid 1.2 per cent, the most in almost two weeks. Gulf Bank KSC lost 5.6 per cent as the Kuwaiti lender may allot 35 million dinars (Dh439.3 million) for second-quarter provisions.
Greek worries
Global sentiment worsened last week as disappointing US housing data and a surge in the cost to protect from a Greek default reignited concern about the economic recovery. The Stoxx Europe 600 Index had its first weekly drop in more than a month and the Standard & Poor's 500 Index fell 3.7 per cent. Crude rose the most in two weeks and gold gained on speculation a weakening dollar will boost its appeal as an alternative asset.
"Europe's problems appear to be ongoing and investors are losing interest, turning to commodities such as gold and petrol," said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi. In the Gulf, "there is some concern over second-quarter earnings." Companies will start announcing second-quarter earnings next month.
Commercial International Bank, Egypt's biggest publicly traded bank, dropped for a second day, losing 1.6 per cent to 68.4 Egyptian pounds (Dh44). Kuwait's Gulf Bank fell the most since May 25 to 420 fils.
Oman's benchmarks stock index slid 0.4 percent, Saudi Arabia's Tadawul All Share Index slipped 0.5 per cent, Qatar's QE Index and Bahrain's gauge fell 0.3 per cent.
