Abu Dhabi leads Gulf declines on recession fears

An investor monitors a screen displaying stock information at the Abu Dhabi Securities Exchange June 25, 2014./File Photo

Sept 26 (Reuters) - Abu Dhabi's stock market fell in early trade on Monday, leading declines in the Gulf on investor concern about the prospect of a global recession.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 1.4% at a two-year low and heading for a monthly loss of 11%, the largest since March 2020.

In Abu Dhabi, the index (.FTFADGI) shed 1.7%, dragged down by a 2% drop for First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender.

Crude prices, a key catalyst for the Gulf's financial markets, fell for a second day on a stronger dollar and potential lower fuel demand in the face of an expected global recession sparked by rising interest rates.

Dubai's main share index (.DFMGI) dropped 1.5%, with most stocks in negative territory, including blue-chip property developer Emaar Properties (EMAR.DU).

Separately, Abu Dhabi-based hospital operator Burjeel Holdings plans to sell an 11% stake in an initial public offering that will list its shares on the emirate's exchange, the company said in a statement on Monday. read more

Saudi Arabia's benchmark index (.TASI) fell 0.4%, with Al Rajhi Bank (1120.SE) down 0.9%.

The Qatari index (.QSI) eased 0.3% as Qatar National Bank (QNBK.QA), the Gulf's biggest lender, fell by 1.7%.

Reporting by Ateeq Shariff in Bengaluru Editing by David Goodman

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