Most Middle East stock markets retreated as oil’s worst week since October ruffled sentiment among traders.
Gauges in Qatar, the United Arab Emirates, Saudi Arabia, Kuwait and Oman dropped. Brent crude lost 6.8 percent last week, amid inflation concerns and worries over the trajectory of near-term demand. Still, Wall Street banks said the selloff was transitory.
Adding to the pressure, an index tracking emerging-market stocks posted the first weekly drop in March as U.S. Treasuries breached key levels after the Fed signaled tolerance for higher yields.
“People are going to be focused especially if oil supply fundamentals change,” including potential production coming from Lybia and Iran, said Alia Moubayed, the Middle East, North Africa analyst and managing director at Jefferies International. “This is what markets are looking at for the medium-term.”
Aramco rose 0.4 percent in Riyadh, erasing a drop of 0.6 percent earlier, after sticking to its goal of paying shareholders a $75 billion dividend for last year even as the coronavirus pandemic caused earnings to plunge.
Follow us on
