Gulf slips in line with weak global shares, oil prices

Gulf stock markets fell in early trade on Tuesday in line with global equities after investor sentiment was soured by the travel curbs ordered by U.S. President Donald Trump.

Kuwait’s index pulled back a further 1.6 percent after dropping 1.5 percent on Monday. Two-thirds of the 15 most valuable shares on the exchange fell, with Gulf Bank dropping 3.7 percent.

The market had risen sharply since the start of the year partly in anticipation of Monday night’s briefing by government ministers on economic development plans. But the ministers announced very little in the way of new policy initiatives, efforts to accelerate economic development or policies to boost economic growth.

Timetables for privatisation and corporate tax reform were not given, and the ministers’ reluctance to tackle issues like subsidy reform in any detail suggested they are still hesitant to challenge opposition to reforms in parliament.

In Dubai, the main index was down 0.9 percent, hit by declines in blue chips. Emaar Properties fell 1.2 percent.

Dubai Investments also lost 1.2 percent. The investment conglomerate reported a 2.9 percent rise in net profit for the three months to Dec. 31 to 368.5 million dirhams ($100.3 million).

Qatar’s main index was down 0.4 percent because of losses in the banking sector. Doha Bank, which lost 2.1 percent in the prior session, was down 1.3 percent.

In Riyadh, the index was down 0.4 percent in the first 35 minutes of trade. All but two of the 12 banking shares declined. Alawwal Bank lost 1.3 percent.

Petrochemical shares were also weak with nearly two-thirds of listed producers trading lower. But Nama Chemicals, which has been rising strongly since last week on news of its corporate recovery plan, jumped a further 7.3 percent.