Negative day for Gulf exchanges

Gulf stock exchanges ended Monday in the red, dragged down by negative sentiment and falling oil prices.

Saudi Basic Industries Corporation (SABIC) and Al Rajhi Bank fell 2.57 percent and 2.27 percent respectively to lead the Tadawul 1.75 percent lower to 8,599.12 points.

Annual inflation in the kingdom accelerated to 11.1 percent in July, its highest level in at least 30 years, due mainly to increases in food and housing costs, official data showed on Monday.

Banks sent UAE markets lower with First Gulf Bank, down 4.78 percent, leading the decline in Abu Dhabi.

Union National Bank eased 3.01 percent as the index slipped 0.17 percent to 4,350.68 points.

In Dubai, Emirates NBD and Dubai Islamic Bank declined 1.82 percent and 1.81 percent respectively as the benchmark fell 0.61 percent to 4,715.73 points.

Mobile Telecommunications Co (Zain) fell 2.38 percent as Kuwait's index ended 1.3 percent lower at 14,028.30 points.

“We've seen selling across the board. Liquidty is abysmal,” said Jassem Al-Zeraei, head trader at National Bank of Kuwait.

The measure traded as low as 13,904.40 points, falling below 14,000 points for the first time since Mar 17.

Weakness in blue chip stocks sent Qatar lower after two days of higher closes, amid a selling spree across all Gulf Arab markets.

Industries Qatar and Qatar Islamic Bank led the decline, falling 2.66 percent and 2.44 percent respectively.

“I feel that for the coming one or two weeks trading will be calm due to Ramadan,” said Samer Al Jaouni, general manager of Middle East Financial Brokerage Co.

Bahrain suffered its biggest one-day fall in nearly six months.

Bahrain Telecommunications Co ended 1.43 percent lower and Arab Banking Corp 4.17 percent lower as Bahrain's measure fell 1.33 percent to 2,648.15 points.

Bank Muscat ended 6.17 percent lower, leading Oman's benchmark to its lowest close since Feb 11, as negative sentiment clouded Gulf Arab markets.

The benchmark dropped 2.67 percent to 9,406.00 points.

Bank Muscat has fallen more than 18 percent since Aug 20 and is trading at 14.31 times expected earnings for 2008, compared with an average of 15.15 for the Omani banking sector.

“Valuations in the market are pretty attractive at this level,” said Syed Quadry, senior research analyst at Amwal Investments.

Lebanon's BLOM index fell 0.93 percent to 1,770.67 points, dragged down by heavyweight Solidere. The real estate firm's A share closed 2.29 percent lower at $28.10 and its B share fell 1.63 percent to $28.25.

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