Major Gulf bourses ease in early trade on fuel demand concerns

2 minute read

A trader looks on near electronic boards showing stock market data at Bahrain Bourse after Joe Biden won the U.S. presidency, in Manama, Bahrain, November 8, 2020. REUTERS/Hamad I Mohammed

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July 5 (Reuters) - Major Gulf stock markets fell in early trade on Tuesday on a decline in oil prices as concerns of a possible global recession curtailing fuel demand outweighed supply disruption fears.

Dubai's main share index (.DFMGI) fell 0.5%, hitting its lowest since late January, as Dubai Electricity And Water Authority (DEWAA.DU) dropped 1.2% and Emirates Integrated Telecommunication (DU.DU) slipped 1%.

Shares of Tecom Group , which is owned by the investment vehicle of Dubai's ruler, declined 6.4% in their stock market debut.

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The company had raised 1.7 billion dirhams ($462.87 million) from investors by offering 625 million ordinary shares in its IPO at 2.67 dirhams a share. read more

However, Dar Al Takaful (DTKF.DU) surged 6.1% a day after the firm announced completion of legal procedures to merge with National Takaful Company .

The Qatari index (.QSI) lost 0.4%, with Gulf's largest lender falling 1.2%.

Separately, Qatar's economy grew 2.5% in the first quarter from a year earlier, although the growth fell slightly from the previous quarter, official estimates showed on Tuesday.

Saudi Arabia's benchmark index (.TASI) dropped 0.2%, on course to extend losses to straight fourth session, hit by a 1.5% fall in Riyad Bank (1010.SE) and a 0.8% decrease in Retal Urban Development Company (4322.SE).

Separately, the Saudi king has ordered the allocation of 20 billion riyals ($5.33 billion) to tackle the effects of rising global prices, state news agency SPA reported on Monday. read more

In Abu Dhabi, the equities index edged up 0.1%, boosted by a 0.7% gain in conglomerate International Holding Company(IHC.AD) and a 1.5% rise in Abu Dhabi Islamic Bank (ADIB.AD).

($1 = 3.6727 UAE dirham)

($1 = 3.7527 riyals)

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Reporting by Mohd Edrees in Bengaluru; editing by David Evans

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