Gulf shares make a comeback after massive losses

Dubai (AFP) –


Stock markets in the energy-rich Gulf states rebounded Monday, after huge losses in the previous session driven by fears over the impact of the coronavirus which has sent oil prices below $50 a barrel.

Kuwait Boursa, which suspended trading Sunday after shedding over 10 percent, led the rally with its premier shares index soaring some 7.0 percent and the All-Shares index surging around 5.0 percent.

Saudi Arabia's Tadawul market gained 2.3 percent at the start of trading with energy giant Saudi Aramco rising 1.0 percent from historic lows on Sunday.

Dubai Financial Market Index climbed 2.2 percent and its sister UAE market in Abu Dhabi rose 1.4 percent. The tiny Muscat Securities Market in Oman inched up 0.2 percent while Bahrain bourse rose 2.2 percent.

The recovery came as oil prices gained more than 3.0 percent to above $51 a barrel.

Qatar Stock Exchange, which was closed on Sunday for a holiday, bucked the trend to slide 3.1 percent at the start of trading.

On Sunday, the first trading day of the week in the region, all the Gulf bourses except Qatar posted heavy losses.

The Saudi market, the region's largest, had dropped 3.7 percent to an 18-month low with Saudi Aramco diving to its lowest price since listing about three months ago.

The United Arab Emirates bourses of Dubai and Abu Dhabi fell 4.5 percent and 3.6 percent respectively. Bahrain shares shed 3.4 percent and the Muscat bourse dropped 1.2 percent.

Asian stock markets also made a partial recovery on Monday as the Bank of Japan pledged support following heavy losses last week on concerns over the mounting economic impact of coronavirus.