Global concerns weigh heavy on Gulf markets

DUBAI DOWN: Global concerns weighed heavy in Dubai and other markets in the Gulf. (Getty Images)

Concerns over the health of the global economy weighed on Gulf bourses on Thursday, with only Kuwait ending the day in positive territory after staging a rally late in the session.

The deepening global financial crisis sent banks in Abu Dhabi sharply lower, while Emaar Properties and Dubai Islamic Bank weighed on Dubai.

“Negative sentiment in global markets is the only driver behind weakness in the Gulf,” said Amr Diab, head of sales at EFG-Hermes.

National Bank of Abu Dhabi, First Gulf Bank and Abu Dhabi Commercial Bank fell 9 percent, 9.4 percent and 9.12 percent respectively.

The capital benchmark closed 2.64 percent lower at 3,730 points.

Emaar fell 3.71 percent and Dubai Islamic Bank 7.63 percent as Dubai’s bourse ended 3.02 percent lower at 3,922 points.

Kuwait’s benchmark ended higher, sparked by a late rally.

Mobile Telecommunications Co (Zain) closed 3.61 percent higher as the firm ended subscription for a 75 percent hike to raise 1.19 billion dinars.

The index rose 0.44 percent to 12,657 points.

National Bank of Kuwait rose 3.45 percent after it started buying back its own shares.

Bahrain’s index closed 0.36 percent lower at 2,510 points.

Banks led Qatar’s index lower by more than 3 percent as Gulf Arab bourses fell amid ongoing global financial turmoil.

Qatar Commercial Bank and Doha Bank fell 6.12 percent and 7.29 percent respectively. Dlala Holding fell 7.17 percent.

“There was profit taking at the beginning of trading but retail selling quickly came to the market,” said Samer Al Jaouni, general manager of Middle East Financial Brokerage Co.

The benchmark closed 3.66 percent lower at 8,555 points after rising on Wednesday for the first time in six trading days.

Bank Muscat fell 3.24 percent as the Omani benchmark ended 0.5 percent lower following falls across bourses in the Gulf Arab region and globally.

Muscat closed at 8,188 points after rising on Wednesday for the first time in six trading days.

“It’s only negative global sentiment [and] next week we’ll see the market in the green as fundamentally it is still attractive,” said Sankar Kailasam, head of research at Gulf Investment Services.

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