Emaar leads Gulf stock plunge

LOSSES EXTENDED: Gulf bourses decline in trading. (Getty Images)

Emaar Properties plunged almost 10 percent on Sunday, pulling Dubai's index to a 45-month closing low, as anxious retail investors offloaded shares across the Gulf on worries about a global recession.

Individual investors dominated the trading floor while institutional investors reportedly keep sitting on cash, waiting for signs of stabilisation on global markets before they step in to buy stocks that have fallen to multi-year lows.

Real estate and banking stocks have borne the brunt of selling across the region, where all markets but Saudi Arabia ended lower.

Emaar Properties led the way, dropping 9.94 percent to its lowest level since Nov. 23, 2004, as investors reacted to news the developer was giving customers more time to repay their mortgages due to liquidity constraints.

Dubai's main index tumbled 5.94 percent to 2,631 points, its lowest close since Feb. 8, 2005. Emirates NBD fell 4.98 percent.

In Abu Dhabi the measure shed 3.95 percent to 3,190 points, with National Bank of Abu Dhabi (NBAD) and Aldar Properties leading the drop. NBAD tumbled 9.35 percent and Aldar lost 7.81 percent.

Saudi Arabia's main index bucked the downward trend, gaining 1.82 percent to end on 5,836.42 points, having dropped 5.78 percent on Saturday. It is down more than 45 percent this year.

Saudi Basic Industries Corp. (SABIC) added 0.74 percent and Al-Rajhi Bank 2.97 percent. Banque Saudi Fransi climbed 4.8 percent.

Kuwait's benchmark fell 2.79 percent to 9,404 points, its lowest close since Dec. 5, 2006. Losses were paced by Mobile Telecommunications Co. (Zain), which slid 7.02 percent, and Kuwait Finance House, which fell 3.53 percent.

Industries Qatar paced losses in Doha, where the main index fell 5.19 percent to 7,021 points. Industries Qatar slid 7.66 percent.

Muscat's main index closed lower for a second trading day, falling 2.6 percent to 6,695 points. It has tumbled about 45 percent since hitting a record on June 12. Bank Muscat declined 4.13 percent and Oman International Bank 4.04 percent.

In Bahrain the benchmark fell 1.66 percent to 2,182 points. Gulf Finance House plunged 7.89 percent.

Stocks slid across the world last week. On Thursday, US equities posted their biggest post-presidential election day drop ever. The negative sentiment has gripped Gulf bourses, each of which has fallen more than 20 percent this year.

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