By Ateeq Shariff
Most stock markets in the Gulf ended lower on Sunday in response to Friday's fall in oil prices amid thin holiday-season trading.
Oil prices - a catalyst for the Gulf's financial markets - settled more than 2% lower on Friday as investors weighed a looming global supply glut, while also keeping an eye on Ukraine peace deal talks on Sunday between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump.
Despite a rebound fuelled by recent supply issues from the December 16 near-five-year lows, oil is on pace for its biggest annual loss since 2020, with Brent crude down 19% year-to-date as increased production sparks worries of an impending oversupply next year.
Saudi Arabia's benchmark index TADAWUL:TASI dropped 1%, with Al Rajhi Bank TADAWUL:1120 losing 1.1% and oil behemoth Saudi Aramco TADAWUL:2222 retreating 0.8%.
Lower oil prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.
In Qatar, the index QSE:GNRI fell 0.4%, with the Gulf's biggest lender Qatar National Bank QSE:QNBK dropping 1.1%.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 gained 0.9%, with Telecom Egypt EGX:ETEL rising 2.2%.
Egypt’s central bank announced a 100 basis point cut to its overnight interest rates on Thursday, according to a statement from the monetary policy committee.
Saudi Arabia
TADAWUL:TASI declined 1% to 10,417
Qatar
QSE:GNRI dropped 0.4% to 10,763
Egypt
EGX:EGX30 rose 0.9% to 41,605
Bahrain
BAHRAIN:BHBX added 0.2% to 2,068
Oman
(.MSX30) was down 0.3% to 5,940
Kuwait
(.BKP) was flat at 9,591