Markets across the Arabian Gulf fell Sunday morning following the collapse of the OPEC+ oil output deal over the weekend.
The three-year deal between the Organization of Petroleum Exporting Countries (OPEC) and non-members, especially Russia, fell apart on Friday as Moscow refused to support a deeper oil cut to support the oil market following a coronavirus-fueled slide in prices.
The Saudi Stock Exchange’s headline index was down over 7 percent by early afternoon trading, while the Dubai Financial Market’s General Index also fell over 7 percent. Real estate and banking shares led the fall, with developer Emaar and banks Dubai Islamic Bank and Emirates NBD leading the market’s fall in the emirate.
Abu Dhabi’s main index, fell over 5 percent. Banks were the biggest losers in the index, with valuations falling over 7 percent, led by First Abu Dhabi Bank, and Abu Dhabi Islamic Bank.
The Kuwaiti bourse plunged more than 10 percent, with financial stocks weighing heavily on the market, led by Ahli United Bank, Kuwait Finance House, and National Bank of Kuwait. The bourse suspended trading in its premium premier market for the day following the fall.
The collapse of the OPEC+ deal comes while markets are already reeling from the economic impact of the coronavirus. Countries across the Arabian Gulf have heavily curtailed travel in a bid to halt the spread of the deadly virus.