Most Middle East equities fell as traders reduced risk before the U.S. election, and amid mounting concerns over pandemic lockdowns and declining oil prices. Kuwait’s Premier Market Index dropped 2.1%, the biggest loss in the region, followed by a 1.6% retreat in Dubai. Gauges in Abu Dhabi, Riyadh, Doha, Muscat and Cairo also fell, while Tel Aviv’s benchmark edged higher.

Sentiment is also being eroded by concern the U.S. presidential election result will be contested, despite polls showing a solid lead for Democrat Joe Biden. Russia will use disinformation to attempt to meddle in American politics no matter who wins the vote, but it may intensify efforts if there is a close result, current and former U.S. officials have warned.

“Markets are waiting for clarity,” said Luciano Jannelli, head of investment strategy at Abu Dhabi Commercial Bank PJSC. “There is a major risk of a contested election,” he said in an interview with Bloomberg Television.

HIGHLIGHTS:
  • MSCI Emerging Markets Index fell 2.9% last week, halting a four-week winning streak
  • EM REVIEW: Virus Surge, Election Jitters Drive Risk Assets Lower
  • MORE: Turkey’s Lira Poised for Steepest Monthly Rout in Two Years

MIDDLE EASTERN MARKETS:

  • The Tadawul All Share Index falls 0.5%, after sliding 7% last week
    • Saudi Aramco retreats 0.3% to 33.60 riyals
    • The Saudi benchmark stock index is nearing it’s 100-day average, a mark it has traded above since early June
  • Kuwait’s main index ends at the lowest level in two and a half weeks
    • Kuwait Finance House -2.7%, National Bank of Kuwait -1.4%, Zain -1.9%
  • Dubai’s DFM General Index extends drop this year to 22%
  • Gauges in Abu Dhabi, Doha, Oman, Egypt and Bahrain fall as much as 0.6%
  • MORE: Abu Dhabi Stock Exchange Appoints Saeed Al Dhaheri as CEO

RECENT FINANCIAL RESULTS: