Middle Eastern stocks dip

Most Middle Eastern stocks were pressured yesterday by the slump in US shares and oil prices due to concerns that a spreading virus from China would curb travel and hurt economic demand.

The ability of the new coronavirus to spread is strengthening and infections could continue to rise, China’s National Health Commission said on Sunday, with almost 2,000 people in China infected and 56 killed by the disease.

Containment efforts, which have included transportation and travel curbs and the cancellation of big events, will be intensified, China’s National Health Commission Minister Ma Xiaowei said.

On Friday, Brent crude fell $1.35, or 2.2 per cent, to $60.69 a barrel.

Saudi’s benchmark index ended down 0.7pc, with Al Rajhi Bank and Saudi Basic Industries shedding 0.6pc and 1.2pc, respectively.

Saudi Kayan Petrochemical plunged 4.3pc, its biggest intraday fall since April. On Thursday, the firm reported that its fourth-quarter loss widened to 167.4 million riyals ($44.63 million).

Saudi Arabia Fertilisers Co (SAFCO), which posted a 40.5pc decline in fourth-quarter profit, dropped 2.3pc.

However, National Medical Care leapt 4.2pc after announcing a higher dividend of 2 riyal per share for 2019.

The Dubai index eased 0.6pc, hurt by a 1.4pc decline in Dubai Islamic Bank and a 0.7pc fall in Emirates NBD Bank.

Qatar’s index fell 0.4pc. Mesaieed Petrochemical declined 1.7pc, while Doha Bank tumbled 2.5pc, to become the top loser.

Yesterday, the latter was scheduled to report full-year earnings, which have been delayed until Feb. 02.

In Abu Dhabi, the index slipped 0.3pc as First Abu Dhabi Bank retreated 0.3pc and Emirates Telecommunications slipped 0.2pc.

The index saw some support from Sharjah Islamic Bank, which gained more than 3pc, as the lender reported a higher annual profit.

Egypt’s blue-chip index edged down 0.1pc, with Sixth of October Development and Investment losing 2.3pc and Cleopatra Hospital sliding 2.6pc.