UAE, GCC stock markets extend losses

The UAE and GCC markets extended their losses on Wednesday morning with most of them trading in the negative territory due to persistent pressure on the oil and new cases of Covid-19.

The Dubai bourse plummeted over two per cent to 1,735 points, dragged down by Ajman Bank, Dubai Islamic Bank, DXB Entertainment and Gulf Navigation. All these scrips lost over four per cent in the first hour of trading.

The Abu Dhabi index slumped half a per cent to 3,714 points, hit by banking, property and energy stocks. Abu Dhabi Commercial Bank, RAK Properties, Bank of Sharjah, Dana Gas and Abu Dhabi Islamic Bank were the top losers in the morning trade.

Oil prices on Wednesday morning dropped with WTI Crude losing 1.5 per cent to $20.17 per barrel while Brent Crude falling 3.7 per cent to $25.37 a barrel as rising US inventory build-up heightened oversupply concerns.

Crude ended a volatile quarter with their biggest losses in history due to global economic freeze amidst coronavirus pandemic and the eruption of a price war between Russia and Saudi Arabia. Both benchmarks lost roughly two-thirds of their value in the quarter, with March's declines of about 55 per cent accounting for the lion's share of the losses.

Saudi Arabia's Tadawul dropped 0.2 per cent to 6,491 points, Oman's Muscat Securities Market lost 0.25 per cent further to 3,439 points, Bahrain Bourse was down 0.36 per cent to 1,350 point and Boursa Kuwait sank 0.9 per cent to 5,152 points on Wednesday morning.

Qatar was the only regional index which was trading in the positive territory, up 0.1 per cent to 8,198 points.

Markets across Asia were mixed on Wednesday.

India's BSE Sensex dropped 1,000 points or nearly four per cent to 28,398.23 and Nifty 50 slipped 300 points or nearly four per cent to 8,286.40 on Wednesday morning.

Pakistan Stock Exchange was up 1.3 per cent or 378 points to 29,610 points in the morning trade.

Japan's benchmark Nikkei fell 4 per cent. Australia's S&P/ASX 200 added 3.4 per cent, while South Korea's Kospi fell 3.4 per cent. Hong Kong's Hang Seng lost 2.2 per cent, while the Shanghai Composite slipped 0.1 per cent. Singapore's benchmark index fell, while stocks were up in Taiwan and Indonesia.

waheedabbas@khaleejtimes.com