By Ateeq Shariff
(Reuters) - Stock markets in the Middle East suffered sharp losses on Monday, with Saudi shares falling the most, as the rapid spread of coronavirus cases outside China darkened the outlook for world growth.
Brent crude
Global shares also extended losses as worries about the impact of the virus grew, with the number of infections jumping in Iran, Italy and South Korea.
Saudi Arabia's benchmark index <.TASI> declined 3%, its biggest fall since May 13 last year when two of its oil tankers were attacked off the coast of the United Arab Emirates.
Al Rajhi Bank <1120.SE> slid 3.7% and petrochemical maker Saudi Basic Industries <2010.SE> dived 4%. Oil giant Saudi Aramco <2222.SE> was down 1.9%, at 33.4 riyals.
Lower oil prices generally narrow spreads and thus pose a negative for petrochemicals, but the sector is also directly impacted by the virus as China is a major consumer, said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.
"Banks are facing their own set of challenges from compressing net interest margins and rising cost of risk."
Qatar's index <.QSI> eased 1.3% with all its stocks slipping into the red. Lender Masraf Al Rayan
The Abu Dhabi index <.ADI> slid 2.2% as the country's largest lender First Abu Dhabi Bank
In Dubai, the index <.DFMGI> dropped 0.8% with Emaar Properties
In Kuwait, the bourse <.BKP> retreated 1.7% while in neighbouring Bahrain the index <.BAX> was down 0.5%. On Monday, the two countries reported their first new coronavirus cases - all people who had been in Iran.
Outside the Gulf, Egypt's index <.EGX30> fell 1.7%, dragged down by a 1.1% fall in Commercial International Bank
(Reporting by Ateeq Shariff in Bengaluru; Editing by Mark Heinrich)