Feb. 5 (Reuters) – Saudi Arabia’s stock market closed lower on Sunday in response to plunging oil prices on Friday amid concerns over a European Union embargo on Russian refined products.
Oil, which is fueling growth in the region, fell on Friday, with Brent crude ending down $2.23, or 2.7%, at $79.94 a barrel.
Meanwhile, Saudi Arabia’s energy minister warned on Saturday that sanctions and underinvestment in the energy sector could lead to energy supply shortages in the future.
The European Union has imposed a series of sanctions against Russia, reducing Russian energy exports.
Saudi Arabia’s benchmark index (.TASI) fell 1.34%, the worst day since December 7. The index was undermined by losses in almost all sectors, with the exception of real estate.
Saudi oil giant Aramco (2222.SE) fell 1.5%, while the world’s largest Islamic bank by market capitalization, Al Rajhi Bank (1120.SE), fell 1.9%.
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Among the losers, Dr Sulaiman Al-Habib Medical (4013.SE) and Riyad Bank (1010.SE) lost 2.2% and 3.5% respectively.
Qatar’s stock index (.QSI) ended down 0.4%, with almost all of its constituent stocks in negative territory.
Qatar Aluminum Manufacturing (QAMC.QA) fell 5.9% and Qatar Industries (IQCD.QA) fell 2.2%.
However, the Gulf’s biggest lender, Qatar National Bank (QNBK.QA), ended its four-game losing streak, up 3.5%.
Outside the Gulf, Egypt’s blue chip index (.EGX30) edged up 0.1%, rebounding from four losing sessions.
The index was supported by a 1.4% gain in Commercial International Bank Egypt (COMI.CA) and a 3.1% rise in Talaat Mostafa (TMGH.CA).
Among the winners, Palm Hills Development (PHDC.CA) and GB Auto (AUTO.CA) jumped 10.3% and 9.2% respectively.
Meanwhile, Egypt’s net foreign exchange reserves rose from $34.003 billion in December to $34.224 billion in January, the central bank reported on Sunday.
Reporting by Md Manzer Hussain; Editing by Toby Chopra
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