Markets suffer across the Gulf

ECONOMIC FEARS: Gulf markets extended losses on Tuesday. (Getty Images)

Gulf markets fell sharply on Tuesday, extended losses into a third day this week as uncertainty about the global economic outlook continued to grip investors.

The drop was led by Dubai, which plummeted over seven percent, while Abu Dhabi and Saudi Arabia both tumbled around 4.5 percent.

Dubai Financial Market Co., Emaar Properties and Arabtec Holding led the drop in Dubai, with Dubai Financial Market dropping the maximum 10 percent limit and Emaar and Arabtec falling 9.88 percent and 9.85 percent respectively.

The main index closed down 7.29 percent at 2,343.15 points.

In Abu Dhabi the benchmark ended 4.87 percent lower on 2,975.28 points, dragged down by real estate stocks. Sorouh Real Estate tumbled 9.48 percent and Aldar Properties fell 8.45 percent.

"What I see is continued selling as we see that further liquidation of portfolios has not stopped. The share price decline is causing further negative sentiment and we haven't seen any catalysts [to stop it]," said Eric Swats, partner at Rasmala Investments.

"Lending rates in the Emirates have not declined like they have in the US. The cost of funds are still very high, so that creates constraints on funding."

In Saudi Arabian the benchmark closed down 5.21 percent at 5,465 points. Market heavyweight Saudi Basic Industries Corp. (SABIC) slid 7.17 percent.

In Doha the measure fell 6.25 percent to 6,342.48 points, with banking stocks pacing the losses. Commercial Bank of Qatar and Qatar Islamic Bank led the drop, down 8.05 percent and 7.76 percent respectively.

Kuwait's main index finished down 2.16 percent at 9,056.10 points. National Bank of Kuwait (NBK) fell 7.04 percent and Kuwait Finance House dropped 6.1 percent.

Muscat's main index closed down 1.99 percent on 6,568.58 points, with National Bank of Oman sliding 3.97 percent.

Bahrain's benchmark ended 2.74 percent lower on 2,105.97 points.

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READERS' COMMENTS

Time to Re-think
Posted by Johnson on Thursday 13 November 2008 at 07:50 UAE time


This is a chance to think all developing countries. Every body is looking to come first, but nobody giving concern about the poor ones. People are struggling to meet their expenses. Every year increasing rent with out any restriction. Poor peoples are struggling to find a place to lay their head. They are struggling to get normal treatment from the hospital, before this is free with nominal fees to every one. Every eye is looking to make money only. New rules are implementing to put more fees to each head to make new way to increase fund. But at last what we are gaining. Every thing we are loosing in one way or other. Time is not end , still we have time to re-think and correct our self.

Panic Selling?
Posted by LK, Dubai, UAE on Wednesday 12 November 2008 at 11:23 UAE time


There seems to be panic in the market, with the perfect storm of liquidity squeeze, over leveraged market punters getting caught in margin calls, global economic weakness with no end in sight, real estate correction and market seizure with no buyers available, banks stopping lending or creating new rules to constrict credit growth and "improve" asset quality - all points to a downward spiral in the stock market as people either sell and run away avoiding risk, or cash in their stock to pay for some other asset that is being squeezed. Looks very very bad at this point.

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