Abu Dhabi leads Gulf bourses lower; Aramco surpasses Apple

Abu Dhabi leads Gulf bourses lower; Aramco surpasses Apple

The index tumbled 5.8 per cent, its biggest intraday fall since March 2020, dragged down by a 8.5 per cent plunge in the UAE’s largest lender First Abu Dhabi Bank

An investor looks up at electronic boards displaying stock information at the Abu Dhabi Securities Exchange stock market. — Reuters file photo

By Reuters Published: Thu 12 May 2022, 9:24 PM

Abu Dhabi led Middle East stock markets lower on Thursday as fears grew that fast-rising inflation will drive a sharp rise in interest rates that brings the global economy to a standstill.

The US Labour Department’s monthly consumer price index (CPI) report suggested inflation may have peaked in April but is likely to stay strong enough to keep the Federal Reserve’s foot on the brakes to cool demand.

In Abu Dhabi, the index tumbled 5.8 per cent, its biggest intraday fall since March 2020, dragged down by a 8.5 per cent plunge in the UAE’s largest lender First Abu Dhabi Bank.

The main share index in Dubai, the Middle East’s business and tourism hub, dived 5.7 per cent, with blue-chip developer Emaar Properties tumbling eight per cent.

Oil prices, a key catalyst for the Gulf’s financial markets, fell in a volatile week as recession fears dogged