MIDEAST STOCKS-Major Gulf bourses extend losses on economic slowdown worries

June 20 (Reuters) – Major stock markets in the Gulf declined in early trade on Monday, in line with global equities and oil prices as concerns over slowing economic growth and shrinking fuel demand weighed on investor sentiment.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 0.4%, while Tokyo’s Nikkei .N225 fell 0.7%. MKTS/GLOB

Dubai’s main share index .DFMGI declined 2%, dragged down by a 3% slide in blue-chip developer Emaar properties EMAR.DU and a 2.1% fall in Sharia lender Dubai Islamic Bank DISB.DU.

In Abu Dhabi, equities .FTFADGI dropped 1.4%, pressured by a 1.3% fall in First Abu Dhabi Bank FAB.AD, the United Arab Emirates’ largest lender, and a 5.3% decline in investment firm Multiply Group MULTIPLY.AD.

The Qatari index .QSI fell 0.9%, hit by a 3.6% decline in petrochemical maker Industries Qatar IQCD.QA.

Saudi Arabia’s benchmark index .TASI slipped 0.2%, wiping out gains for the year with oil giant Saudi Aramco 2222.SE retreating 0.4%, while Riyad Bank 1010.SE eased 0.2%.

However, Alkhorayef Water And Power Technologies 2081.SE surged 4.1% after the company secured a contract worth 228.2 million riyals ($60.82 million) for operation and maintenance of Jeddah city’s water sector.

Separately, Alamar Foods set the price range for its initial public offering between 103 and 115 riyals per share.

In Oman, the index .MSX30 edged up 0.1%, supported by a 1.6% jump in HSBC Oman Bank HBMO.OM.

The bank said it would hold preliminary talks with local rival Sohar International Bank BKSB.OM on possibility of a cash-and-shares deal to merge the two lenders.

($1 = 3.7521 riyals)

(Reporting by Mohd Edrees in Bengaluru; Editing by Subhranshu Sahu)

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