UAE, GCC markets slump; Saudi stocks down by 6%
Moody's revised Saudi Arabia's outlook to negative on Saturday.
The UAE and other Gulf stock markets plummeted on the first day of the week, hit by renewed concerns about the US-China trade war after President Donald Trump threatened new tariffs on China, as well as downward revision in ratings of regional companies and economies.
Saudi Arabia's Tadawul index, the region's largest stock exchange, was the worst hit on Sunday, falling by nearly six per cent.
With local and regional markets already reeling under the impact of the Covid-19 pandemic, the renewed trade worries hit the global markets on Friday with the Dow falling 2.5 per cent, S&P 500 losing 2.8 per cent and Nasdaq crashing three per cent.
Dubai Financial Market on Sunday fell below 2,000 points, led by decline in Emaar Properties, Emaar Malls and Air Arabia. International ratings agency Moody's Investors Service on Thursday revised Emaar Properties outlook to negative. The Dubai bourse was down by 2.5 per cent an hour after opening the trade.
Abu Dhabi Securities Exchange was also down by 1.63 per cent to 4,161.2 points on Sunday, driven down by Commercial Bank International, Aldar Properties, Dana Gas and Eshraq. They all fell by more than 4.8 per cent.
Saudi Arabia's Tadawul plunged six per cent or 429 points within a few minutes of opening the trade to 6,683 points, hit by a raft of negative news about the Kingdom's economy over the weekend. Moody's revised Saudi Arabia's outlook to negative on Saturday and a sharp fall recorded in Saudi Arabia Monetary Authority's net foreign assets in March.
Boursa Kuwait slumped by over one per cent to 5,308.5 points while Muscat Securities Market was down by 0.6 per cent to 3,538.8 points. Qatar Stock Exchange also fell 0.73 per cent to 8,700 points while Bahrain was nearly unchanged on Sunday.
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