Most of the Gulf’s major stocks were lower today, Sunday, due to falling oil prices amid supply problems and uncertainty about the price ceiling for Russian oil, while the Egyptian index fell due to price corrections.
The price of crude oil, which has fueled growth in the region, settled at $76.10 a barrel during volatile trading on Friday on growing recession fears and weak economic data from China, Europe and the US.
Meanwhile, US producer price data also generated mixed opinions, raising hopes for a correction in inflation but also fueling fears that the Federal Reserve might have to keep interest rates higher for a longer period.
Currencies in most Gulf countries are pegged to the US dollar and closely monitor the actions of the Federal Reserve in monetary policy, exposing the region to the direct impact of any tightening of monetary policy.
The Saudi index fell 1.1%, while oil giant Aramco fell 1.8% and Retal Urban Development fell 0.7%.
However, shares of the National Bank of Saudi Arabia and ACWA Power jumped 2% and 4.4%, respectively.
The Qatari index fell 0.4 percent after Qatar Islamic Bank fell 1 percent and Industries Qatar fell 0.8 percent.
Outside the Gulf region, the Egyptian blue-chip index fell 1.7 percent, ending eight straight days of gains.