Gulf stocks decline amid global sell-off

Saudi Arabia’s benchmark index closed on Tuesday lower by more than 1 percent, in line with the sell-off in global and regional financial markets and a decline in oil prices.

The Tadawul All Share Index (TASI) fell 1.6 percent to reach 7,466 points, with 167 decliners against 12 gainers.

Nearly all sectors were in the red. The heavyweight materials index, which includes companies like SABIC and other petrochemical firms, was down 1.6 percent.  The banking sector was lower by 1.7 percent.

 “The decline in global equities, especially in the US, is having an impact on the regional markets,” Imad Chukrallah, fund manager at Dubai-based Amwal Capital Partners, told Argaam.

He added that the drop in oil prices is also weighing on the investor sentiment in the Gulf.

Crude oil futures have been under pressure since last week. On Tuesday, Brent crude extended its decline from the previous session, falling 1.2 percent to $66.84 per barrel (bbl). US West Texas Intermediate (WTI) crude futures were down 1.3 percent at $63.31/bbl.

Elsewhere, Dubai’s main index fell 1.5 and Abu Dhabi was down 1 percent.

Qatar’s QE index lost 2.1 percent to close at 8,651 points.

US equities fell sharply on Monday, wiping out all gains for January and turning lower for the year. “The key trigger for the sell-off was the fear of rising inflation,” said Hussein Sayed, chief market strategist at FXTM.

The Dow Jones Industrial Average fell 4.6 percent on Monday, while Nasdaq Composite Index was down 3.8 percent.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com