MIDEAST STOCKS-Most Gulf markets fall on China economic worries, UAE holds up

By Md Manzer Hussain

Jan 17 (Reuters) – Most Gulf markets closed lower on Tuesday tracking global peers, as weak economic growth in China renewed concerns about a downturn, but UAE markets continued to rally.

European shares paused their new year rally and Asian equities slipped after data showed China’s economic growth in 2022 slumped to one of its worst levels in nearly half a century.

However, OPEC said on Tuesday Chinese oil demand would rebound this year due to relaxation of the country’s COVID-19 curbs and drive global growth. It also sounded an optimistic note on the prospects for the world economy in 2023.

The benchmark index .TASI in Saudi Arabia fell 0.4%, with luxury real estate developer Retal Urban Development 4322.SE dropping 0.8% while Arab National Bank 1080.SE continued its slide for the third session to close 4% lower.

However, oil giant Aramco 2222.SE recovered from its slide by inching up 0.2%.

Meanwhile, Renault SA RENA.PA and China’s Geely Automobile Holdings0175.HK are working to finalize a deal to bring Aramco 2222.SE in as an investor and partner to develop and supply gasoline engines and hybrid technology.

In Abu Dhabi, the index .FTFADGI rose 0.1 % with the country’s biggest lender First Abu Dhabi Bank FAB.AD up 0.4%. and fertiliser maker Fertiglobe FERTIGLOBE.AD rose 2.2%.

Dubai’s benchmark index .DFMGI inched up 0.7%, lifted by a 5% rise in Emirates Central Cooling Systems EMPOWER.DUand a gain of 3.5% in utility firm Dubai Electricity and Water AuthorityDEWAA.DU.

Qatar Stock index .QSI slumped 2.2%, extending losses for six sessions in a row, with almost all the stocks in the index moving into negative territory, led by a 2.5% slide in Gulf’s biggest lender Qatar National Bank QNBK.QA and a 3.2% decline in Qatar Islamic Bank QISB.QA.

Outside the Gulf, Egypt’s blue-chip index .EGX30 added 0.9%, continuing its rally since Wednesday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.