(Bloomberg) --
Israel's benchmark stock index fell the most in the Middle East as the country paused plans to further reopen the economy after a rise in the number of coronavirus cases.
The TA-35 declined as much as 2.5%, before trimming losses to 1.5% as of 3:22 p.m. local time. Tower Semiconductor, Israel Discount Bank and Mizrahi Tefahot Bank weighed the most on the gauge.
Prime Minister Benjamin Netanyahu warned on Sunday that Israel may have to renew lockdowns following a surge in coronavirus cases. He will hold a meeting on Monday to decide on further steps. The number of daily cases in the country climbed to 300 at the end of last week, a level not since since April.
Read more: Netanyahu Warns of Possible Second Coronavirus Lockdown
In the Gulf, Dubai's benchmark stock index closed 0.9% lower, with Emirates NBD and Dubai Islamic Bank down 3.9% and 2.5%, respectively. Moody's reduced the long-term ratings of eight UAE-based banks to negative from stable.
“The coronavirus outbreak represents a significant shock to the UAE's open economy and coincides with a significant drop in oil prices that also weighs on growth,” the ratings firm said.
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MIDDLE EASTERN MARKETS:
Israel's economy continues to recover but there are signs the rebound is slowing, Meitav Dash Brokerage's Chief Economist Alex Zabezhinsky wrote in a note
- He highlights that local stocks and bonds have under-performed global markets over the last month
- Saudi Arabia's Tadawul All Share Index falls 0.1%
- The kingdom resumed all commercial activities on Sunday
- Saudi Arabian Mining Co. climbs 1.2%. Its phosphate unit signed an accord with a group of lenders to refinance and reschedule debt worth $4.1b
- READ: Saudi Home Financier Seeks to Raise About $123 Million in IPO
- READ: Buyer Beware: Oil Stockpiles Are Enormous: Julian Lee
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