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Major Gulf bourses fall as Credit Suisse fears spooking investors – markets MIGMG News

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Major Gulf bourses retreated in early trading on Thursday and were on course to extend their losses on news that Credit Suisse’s biggest investor said it could not provide the lender with more bailouts.

A week ago, the start-up lender Silicon Valley Bank in California collapsed and now a systemic bank in one of Europe’s financial capitals is in enough trouble to ask for help from the authorities.

Credit Suisse – which fell 24% in the previous session – said on Thursday it would borrow up to $54 billion from the Swiss central bank to boost liquidity and investor confidence, after a fall in its shares intensified fears of a global banking crisis.

Saudi National Bank – the kingdom’s biggest lender – bought a nearly 10% stake last year after participating in Credit Suisse’s capital raising and committing to invest up to 1.5 billion Swiss francs ($1.62 billion).

Gulf stocks in the red as bank worries spread

Saudi Arabia’s benchmark index fell 0.5%, with the Saudi National Bank down 3.7%, trading at its lowest level since November 2020.

The lender has lost nearly $27 billion in market value since Oct. 27 after committing to invest in troubled Credit Suisse.

Elsewhere, oil giant Saudi Aramco fell 1.7%.

Dubai’s main share index, which snapped a six-day losing streak in the previous session, slipped back into negative territory to trade 0.6% lower.

In Abu Dhabi, the index fell by 0.7%.

Qatar’s index fell 2.1%, weighed down by a 9.4% drop in petrochemicals maker Industries Qatar, as the stock went ex-dividend.

Among other losers, Sharia-compliant lender Masraf Al Rayyan and Commercial Bank slipped 3.9% and 3.1%, respectively. Both lenders traded ex-dividend.


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