Gulf stocks shed gains as investors turn cautious over economy prospects
Banking stocks remain pressure as reporting season gets underway
Gulf stocks edged back in early trade on Tuesday taking their cues from a lackluster performance in global markets, which retreated on hints of economic recovery slowing.
Oil, a backbone of Gulf economies, also fell as debate continues to play out on the $1.9 trillion stimulus package recommended by the newly installed US administration, stoking investor fears that the package may hit roadblocks and get watered down in its final shape.
The mood was further darkened by a resurgence of coronavirus cases and renewed lockdowns in parts of the world, taking the shine off the Saudi wealth fund's investment roadmap - announced on Sunday - that cheered Gulf investors on Monday.
Waiting on clarity
Dubai Financial Market dropped 0.6 per cent in early trade as real estate and banking stocks weighed most on the index. Emaar Properties fell 1.3 per cent while Dubai Islamic Bank was down 0.8 per cent as investors sought more clarity ahead of earnings announcements expected to gather pace this week.
Abu Dhabi's main index shed 0.3 per cent as it was pulled lower by banking shares. The UAE's largest lender, First Abu Dhabi Bank, slipped 0.3 per cent as its Board of Directors meets to discuss full-year results later today.
Exposure woes
Banks extended losses in Oman after announcing their exposure to the defaulter firm Davesh Group. Sohar International Bank was 1.1 per cent down.
Qatar Exchange's main index traded roughly flat with banking and energy stocks moving sideways. Heavyweight lender Qatar National Bank slipped 0.3 per cent while Qatar Gas Transport rose 1.5 per cent. Bahrain was little changed in early trade with no significant movement seen in its stocks.