Gulf bourses tumble as oil prices extend losses

Stock markets in the energy-rich Gulf states tumbled Monday as oil prices extended losses amid unprecedented measures against the coronavirus, as Bahrain became the first Arab Gulf country to record a death from the disease.

Oil prices, the main source of Gulf revenues, skidded to their worst level since early 2016 amid a price war between Russia and Saudi Arabia, the second and third world producers.

The slide was led by the UAE bourses of Abu Dhabi and Dubai which dived by 7.8 per cent and 6.2 per cent, respectively, both trading at multi-year lows.

The two bourses ignored further financial support announced Monday by some countries on top of a USD 27.2 billion stimulus unveiled the previous day to support the economy against the fallouts of the coronavirus.

Boursa Kuwait continued to bleed with the Premier Index sliding 5.0 per cent and the All-Shares Index dropping 3.9 per cent.

Following the footsteps of the US Fed, Kuwait Central Bank cut its main discount rate by 100 basis points to 1.5 per cent, its lowest ever.

The Saudi Tadawul market, the region's biggest, was trading 3.3 per cent lower despite a USD 13.3 billion stimulus announced the by the kingdom to support the economy.

Bahrain bourse dropped 1.4 per cent and Muscat market ended 1.8 per cent down.

Qatar Stock Exchange bucked the trend for the second day after the gas-rich emirate announced a USD 23 billion stimulus in addition to USD 2.7 billion to support the stock market.

The six-nation Gulf Cooperation Council -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates -- have taken unprecedented measures to combat the coronavirus pandemic, including halting flights, closing borders, restricting travel and shutting all entertainment facilities.

Bahrain on Monday became the first GCC member state to report a death due to coronavirus.

The 65-year-old woman had pre-existing medical conditions, the health ministry said on Twitter.

Nearly 1,000 cases of the virus have been recorded so far across the six-nation GCC.

Oil prices extended losses Monday with US benchmark West Texas Intermediate (WTI) briefly dipping below USD 30 a barrel, or 5.5 per cent, in morning Asian trade before regaining its footing.

The Brent global benchmark was down 3.28 per cent at USD 32.74 a barrel.