Gulf shares down despite stimulus packages

DUBAI — Gulf shares dropped on Sunday amid unprecedented shutdowns to ward off the spread of coronavirus, despite tens of billions of dollars in stimulus packages announced by oil-rich governments.

The Saudi Tadawul market, the region’s largest, dropped 1.1 per cent despite the kingdom announcing a $13.3 billion stimulus package to help its economy cope with the effects of the virus and a low oil price.

The market was also impacted by a 20.6 per cent dive in 2019 net profit of energy giant Saudi Aramco.

UAE’s bourses in Dubai and Abu Dhabi ignored a $27.2 billion stimulus package announced by the central bank, mainly directed at banks which were asked to delay debt payments of customers for up to six months. 

Dubai shares dipped 3.4 per cent, sliding below the 2,000-point mark for the first time since 2013, and the Abu Dhabi stock market ended the day down 1.9 per cent.

Boursa Kuwait was the biggest loser with the Premier Index sliding 6.5 per cent and the All-Shares Index shedding 5.5 per cent as the country announced stringent virus containment measures.

Kuwaiti authorities ordered the closure of shopping malls, beauty salons and barber shops, days after halting commercial flights, banning the entry of foreigners and giving employees a two-week public leave.

Saudi Arabia also halted all commercial flights while UAE closed all entertainment facilities, stopped new visas to foreigners, banned flights to several countries and asked elderly employees to work from home.

Bahrain Boursa was down 1.5 per cent while the markets of Qatar and Oman bucked the trend, rising 1 per cent and 0.4 per cent respectively.

Last week, the seven bourses slumped to multi-year lows as the coronavirus hit the oil market hard and oil producers waged a price war that sent prices crashing.

The six countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE — have reported over 800 cases of coronavirus, most of them returnees from Iran, but no deaths so far.