Oil price fears hammer Gulf stocks

MARKETS FALL: Negative sentiment sees all but one of the region's seven markets falling into the red. (Getty Images)

Negative sentiment from a slump in oil prices hammered Gulf stocks on Monday, with all but one of the region's seven markets falling into the red.

United Arab Emirates markets fell to their lowest closes in more than four years, while Kuwait dropped to its lowest close since May 2005.

The Dubai index fell 3.91 percent to 1,732 points, its lowest close since Oct. 26, 2004, while Abu Dhabi's measure lost 2.88 percent to 2,502 points, its worst finish since November 2004.

Emaar Properties tumbled 4.94 percent and Aldar Properties fell 8.08 percent.

"Yesterday we saw a huge sell-off. Negative sentiment across the board is pushing it down," said Mohammed Galal, head of foreign institutional sales and sales trading at Al-Futtaim HC Securities in Dubai.

Kuwait's benchmark shed 2.18 percent to 8,211 points, its lowest finish since May 30, 2005. Telecom Zain fell 6.73 percent and National Bank of Kuwait 7.69 percent.

"Negative news on oil prices is causing the continuation of the same downward trend," said Shahid Hameed, head of asset management, GCC, at Global Investment House. "When oil prices fall to these levels, over all GDP growth expectations go down substantially."

Oil prices rose to near $43 a barrel on Monday, having slumped to a four-year low of $33.87 last week.

Saudi Arabia's main index declined in early trading, led by banking stocks.

The benchmark of the largest Arab bourse fell 0.51 percent to 4,750 points. Al-Rajhi Bank shed 1.73 percent and Samba Financial Group 0.87 percent.

The Saudi index has fallen more than 56 percent this year, most of the declines in the fourth quarter.

Oman's main index closed at a 20-month low, steered by telecom and construction sector firms.

The index fell 2.7 percent to 5,781 points, its lowest close since April 16, 2007. Oman's measure has fallen more than 50 percent since hitting a record high on June 12.

Telecom Omantel shed 3.94 percent, Raysut Cement Co. 5.03 percent and Galfar Engineering and Contracting Co. 7.04 percent.

The Bahrain index fell 2.19 percent to 1,820 points, its lowest close since Jan. 6, 2005. Ahli United Bank retreated 4.55 percent.

Qatar's main index bucked the regional downtrend, closing higher for the ninth time in 10 trading days.

The Doha index gained 0.54 percent to 6,701.14 points. Industries Qatar rose 1.49 percent and Commercial Bank of Qatar gained 3.27 percent.

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