Gulf mostly subdued as Emaar hits Dubai on weak outlook

Gulf mostly subdued as Emaar hits Dubai on weak outlook

An investor monitors a screen displaying stock information at the Abu Dhabi Securities Exchange June 25, 2014

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Sept 5 (Reuters) – Most Gulf stock markets fell on Monday as blue-chip Emaar Properties dragged down Dubai despite PMI pointing a solid non-oil private sector growth in UAE and Saudi Arabia in August.

Saudi Arabia’s non-oil private sector expanded in August at its fastest rate since October last year, as business activity was boosted by improving demand conditions, a survey showed on Monday. read more

A similar survey in UAE showed non-oil private sector grew in August at its fastest pace since June 2019, boosted by better demand and lower selling prices, though sentiment about the future slipped to a 17-month low.

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Saudi Arabia’s benchmark index (.TASI) fell 0.3%, with Al Rajhi Bank (1120.SE) easing 0.6% and Saudi National Bank (1180.SE) decreasing 1%.

In Dubai, the main share index (.DFMGI) tumbled 1.3%, extending the losses for four straight session. Developer Emaar Properties (EMAR.DU) dropped 3.3%, its biggest fall in two month, while Emirates NBD Bank (ENBD.DU) slid 0.8%.

A Reuters poll of property market analysts showed property prices in Dubai will rise this year and next at a slower pace than previously thought as higher mortgage rates and the cost of living crisis will reduce foreign demand. read more

Most of the analysts said the recovery was fragile and uneven, and an oversupply of residential properties along with rising interest rates would pressure prices over the coming months.

Abu Dhabi’s index .

However, Alpha Dhabi Holding (ALPHADHABI.AD) gained 1.1% after its unit Pure Health signed an agreement to acquire a minority equity investment in Ardent Health Services, a leading U.S. healthcare provider, for a total investment of AED 1.8 billion.

In Qatar, the benchmark (.QSI) also slipped 0.5%, extending the losses for sixth consecutive sessions, as financial and industrial stocks moved sideways. Gulf’s largest lender Qatar National Bank (QNBK.QA) shed 1.3% but Industries Qatar (IQCD.QA) was up 1.2%.

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Reporting by Shamsuddin Mohd in Bengaluru; editing by Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.

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