Mideast Stocks: Major Gulf markets track global peers, oil prices lower

Mideast Stocks: Major Gulf markets track global peers, oil prices lower

Stock markets in the Middle East fell sharply on Sunday, mirroring the previous session’s slide in oil prices and global stocks caused by worries that a higher-than-expected U.S. inflation in May will lead to a long-term policy tightening and result in a sharp economic slowdown.

The investor woes were exacerbated as China reimposed lockdown measures, stoking worries about demand for oil, which significantly shapes the direction of markets in the region.

Saudi Arabia's benchmark index tumbled 2.2%, dragged down by a sharp decline in financial and energy stocks.

Oil giant Saudi Aramco dropped 3%, while Al Rajhi Bank fell 1.2%.

However, Saudi Telecom Company surged 6.57% after its board proposed increasing its share capital by 30 billion riyals ($8 billion) with the issue of 1.5 bonus shares for each share owned.

The company board also recommended changing its dividend policy - to commit the firm to 0.40 riyal ($0.11) per share per quarter rather than 1 riyal ($0.27) - in response to the proposed share capital increase.

In Qatar, the benchmark retreated 1.4%, as Qatar Islamic Bank dropped 2.7% and Industries Qatar lost 1.8%.

Outside the Gulf, Egypt's blue-chip index declined 1.4%, with Commercial International Bank Egypt falling 2.2% and Eastern Company sliding 4.1%. Egypt's petroleum ministry