Trading dries up as Gulf markets continue fall
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 23 March 2008
Stocks around the Gulf declined on Sunday with trading drying up as investors await first quarter results and fears of a global economic downturn continuing to weigh on markets.
Benchmark indexes in Saudi, the UAE, Kuwait, Qatar and Oman all fell both in terms of volume of shares traded and value, with Bahrain's the only one to end the day in positive territory.
“The market will continue performing sideways and with low volumes… until companies come up with their first quarter results,” Amro Diab, head of GCC institutional sales for Egyptian investment bank EFG Hermes, told ArabianBusiness.com.
“We will continue following the footsteps of the global markets for now,” Diab added, stating that there was a clear “psychological correlation” effecting regional trading.
Dubai continued its poor performance from last week, with Shuaa Capital and telecom Du pacing the losses. Du closed down 2.18% and Shuaa lost 2.13% to drag the index 0.54% lower to 5,547.86 points.
Abu Dhabi, which bounced back on Wednesday, also dropped, with Abu Dhabi Islamic Bank (ADIB) plunging 2.2% to drag the main index down 0.68% to finish on 4,644.49 points.
Around 126 million shares changed hands in Dubai, less than a fifth of the six-month average, while in Abu Dhabi only 53 million shares traded, approximately one-sixth of the six-month average.
In Saudi, the Gulf’s largest market by capitalisation continued its poor run of late, notching up its seventh loss in the last eight trading days.
Saudi Basic Industries Corporation (Sabic), the world's biggest chemicals maker by market value, shed 0.6% in heading for its lowest close since March 17, helping pull down the main index 0.38% to close at 9,385.80 points.
Kuwait’s main index also fell. The index came off the record high on Wednesday after the Gulf state’s ruler dissolved parliament and announced fresh elections in May.
Optimism that Kuwait’s new parliament would expedite reform designed to boost the economy waned as some analysts warned it would be tough to wean nationals off the entrenched nanny state system.
“I don’t think anything will change because the government is not serious about economic reforms,” Naser Al-Nafisi, general manager of the Al-Joman Centre for Economic Consultancy in Kuwait, told newswire Reuters.
Shuaa Capital and The International Investor Company led the fall, posting loses of 4.83% and 5.06% respectively. The main index shed 0.16% to close on 14,432.30 points.
Shares in Oman posted the largest fall in Sunday's trading, with the main index shedding 1.05% to close on 10,429.63 points.
Qatar's main index also declined, down 0.84% to 9,802.89 points, led by Industries Qatar, which fell 2.56%.
Bahrain's benchmark, the Gulf's only gainer, ended the day up 0.11% at 2,797.17 points, helped by telecom Batelco and Gulf Finance House, which climbed 0.24% and 1.06% respectively.
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