Most golf markets turn south as Credit Suisse shakes up the markets

March 15 (Reuters) – Most Gulf stock markets gave up early gains to end lower on Wednesday, tracking a fall in global stocks as renewed unease gripped markets after the largest investor, Credit Suisse, said it could the Swiss bank does not provide more funding with help.

The Saudi National Bank (1180.SE) — the kingdom’s largest lender — acquired a nearly 10% stake last year after participating in Credit Suisse’s capital raise and pledging to raise up to 1.5 billion Swiss francs (January 1). .63 billion US dollars) to invest.

Bank stocks, battered after the collapse of Silicon Valley Bank, resumed their sell-off as Credit Suisse stock shed nearly a quarter of its value and fell to record lows.

Saudi National Bank shares fell 2.7%, hitting their lowest level since February 2021.

The lender lost nearly $25 billion in market value since Oct. 27 after pledged to invest in embattled Credit Suisse.

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The Saudi Arabian benchmark index (.TASI) slipped 1.6%, dragged down by a 2.9% decline in oil giant Saudi Aramco (2223.SE) as the stock went ex-dividend, while Retal Urban Development Co (4322.SE) fell 1.2%. .

In Qatar, the index (.QSI) ended 1% lower as most of its constituents were in negative territory, including Qatar International Islamic Bank (QIIB.QA), which fell 5.8%.

The Abu Dhabi Index (.FTFADGI) fell 0.7%.

Oil — a key catalyst for Gulf financial markets — extended losses, with Brent crude hitting a three-month low as unease over Credit Suisse spooked global markets and dashed hopes of a recovery in Chinese oil demand.

The main Dubai stock index (.DFMGI), up more than 1% in early trade, closed 0.2% higher, ending six losses.

A shift in global sentiment following fears sparked by the collapse of US banks could push the Dubai market into a recovery phase when investors return to the market, said Ahmed Negm, head of MENA market research at XS.com.

“At the same time, traders will be keeping a close eye on developments in global markets and central bank decisions this week and next.”

Outside the Gulf, Egypt’s blue chip index (.EGX30) plunged 4.2%, with investment bank EFG Hermes (HRHO.CA) falling more than 12%.

($1 = 0.9214 Swiss Francs)

($1 = 3.7555 riyals)

Reporting by Ateeq Shariff in Bengaluru; Edited by Shilpi Majumdar

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