Gulf bourses end in red on Q4 earnings fears
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 13 January 2009
Saudi Arabia's main index closed 1.41 percent down at 5,079 points as a drop in oil prices and expectations of weak resulted for some of the kingdom's largest companies weighed on sentiment.
"It's mainly the oil price ... and people are speculating on company results," said Abdullah al-Aqeel, equity trader at Samba Financial Group.
Oil fell towards $36 a barrel on Tuesday to its lowest level in three weeks as further signs the world economy was slowing sharply dampened demand expectations.
Al Rajhi Bank lost 1.24 percent, while Saudi Basic Industries Corp (SABIC) fell 2.23 percent.
Worse-than-expected fourth-quarter earnings published earlier this week by Saudi Arabian Fertilizers Co (Safco), of which SABIC owns 42 percent, is also weighing on sentiment, Aqeel said.
Safco shares end 3.91 percent lower.
Qatar's main index QSI closed 1.95 percent lower at 6,213 points.
Industries Qatar and Barwa Real Estate declined 3.87 percent and 3.93 percent respectively.
Oman's index MSI extended losses into a second trading day, closing down 1.64 percent at 5,288 points.
Heavyweight Bank Muscat fell 1.91 percent, while Raysut Cement Co plummeted 8.36 percent.
"Basically we are in wait-and-see mode," says Mohammed Abu Ghoush, head of equities brokerage at Ahli Bank in Doha, adding that the volume and value of trades is thin as most of the local funds stay away.
The next strong support level for the index is at between 5,800 and 5,900 points, Abu Ghoush says.
"The market needs another 300-point drop to find a bottom," he says.
Markets in the United Arab Emirates ended lower as property and bank stocks are hit by investor fears about potentially weak fourth-quarter earnings and the global economic slowdown.
In Dubai, Emaar Properties took the most points off the index, slipping 4.84 percent, while Dubai Islamic Bank loses 3.03 percent.
The index DFMGI ended 2.76 percent down at 1,708 points, ending a two-day run of wins.
In Abu Dhabi, Sorouh Real Estate and Aldar Properties ended down 5.96 percent and 2.59 percent respectively. National Bank of Abu Dhabi declined 3.65 percent.
Emirates Telecommunications Corp (Etisalat) ended down 0.47 percent, a day after winning Iran's third mobile licence.
A consortium led by Etisalat plans to invest at least $1 billion into building its network in Iran, a company official says.
The benchmark ADI slipped 1.2 percent to 2,484 points.
Kuwait's main index ended down 0.66 percent at 7,150 points, with National Bank of Kuwait losing 3.64 percent.
In Bahrain, the benchmark BAX closed 0.2 percent lower at 1,748 points. (Reuters)
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