Market fall led by banking sector

BANKS DROP: Markets across the Gulf traded lower on Wednesday as banks weighed on the Gulf's benchmarks. (Getty Images)

Markets around the Gulf ended lower on Wednesday as banks weighed on the benchmarks, tempering recent gains.

Saudi Arabia, the Gulf’s worst performing market this year, inched lower after touching a two-month high in Tuesday’s trading, while markets in the UAE, Qatar, Oman and Bahrain also slipped.

Kuwait’s benchmark was the only index to finish in positive territory for the session.

SAAB bank and Samba Financial Group dragged Saudi’s index down, dropping 1.32% and 1.49% respectively.

The index slipped 0.23% on 10,066.16 points. The benchmark finished the day down 8% for the year so far.

In the UAE markets in both Abu Dhabi and Dubai fell, paced again by poor performances from the banking sector.

The Abu Dhabi benchmark slipped for a second straight day as Abu Dhabi Commercial Bank (ADCB) retreated 1.1%. The index closed 0.04% lower on 4,988.86 points.

Dubai Islamic Bank and Emirates NBD dropped 1.26% and 1.21% respectively to take the edge off strong results for the Dubai market last week. The benchmark ended 0.24% down on 5,737.72.

Bahrain and Qatar, two of the stronger markets in recent months, also slid on Wednesday due to downward pressure from the banking sector.

Bahrain’s measure fell 0.3% to close on 2,840.47 points, with Gulf Finance House losing 1.2%.

In Qatar, the Gulf’s second-best performing market of the year, the benchmark edged slightly lower, down 0.04% to close on 11,289.26 points.

Industries Qatar and Qatar Gas Transport Company (Nakilat) dropped 0.06% and 0.74% to weigh on Doha’s main index. The benchmark has still gained more than 17% so far this year.

Oman, by far the best performer of the year with gains of over 24%, also ended lower on poor performances from banks. National Bank of Oman and Bank Muscat shed 2.76% and 1.02% respectively, while Oman Cement also dropped 6.42% after its first-quarter profit results missed all analysts’ forecasts.

The index slipped 0.07% to finish the day on 11,210.97 points.

Gulf Bank and Al Ahli Bank helped out to lift Kuwait's main index to a higher close on Wednesday, the two finished up 3.9% and 3.64% respectively.

The benchmark, the Gulf’s third best performer of the year, rose 0.36% to close on 14,691.10 points.

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