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Sun 14 Jun 2020 07:02 PM

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Kuwait, Dubai stocks lead in Gulf losses

Shares in emerging markets fell for a second day on Friday

Kuwait, Dubai stocks lead in Gulf losses
A photo taken on January 6 2020 shows the Dubai Financial Market in the Gulf emirate. Photo by Karim SAHIB AFP

Most equity markets in the Gulf declined as investors remain cautious about the pace of the economic recovery, while volatility jumped in global markets.

The main equities index in Kuwait led losses, finishing 3.2% lower. In Dubai, the DFM General Index lost as much as 2%, with banks weighing on its performance and as an indicator for short-term volatility climbed to the highest level since early May. Equity gauges in Abu Dhabi, Saudi Arabia, Qatar and Bahrain also declined between 0.2% and 0.5%, while the index in Oman rose 0.2%.

Shares in emerging markets fell for a second day on Friday, trimming gains from earlier this month after the Federal Reserve warned the road to a full US recovery will be a long one. Fears of a second wave of coronavirus infections in the US also added to risk aversion, and Brent crude posted the first weekly drop since April.

“Volumes remain low as investors remain cautious following the volatility witnessed globally,” said Marie Salem, head of institutions at Daman Securities in Dubai. She added that lower oil prices last week should put some additional pressure on the Saudi market.

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