Dubai suffers biggest one-day loss since Jan

MARKETS FALL: Gulf exchanges were in negative territory on Monday. (Getty Images)

The Dubai index closed lower for the first session in four, with Monday's decline its largest since Jan. 21 as frightened investors sold following big losses in Saudi stocks.

The benchmark dropped 4.5 percent to 1,667 points, with widespread selling underlining the fragile confidence of investors, despite the index gains so far this month.

"It was extremely brutal and there was panic selling - profit-taking was expected but not as severe as this," said Ayman el-Saheb, Darahem Financial Brokerage director of operations.

Shuaa Capital fell almost 10 percent, while property-related stocks also tumbled as Union Properties, Deyaar and Arabtec Holding all fell more than eight percent. The latter announced a 30 percent drop in first-quarter profits.

The Abu Dhabi index also retreated, dropping 2.7 percent to 2,624 points, snapping a seven-session winning streak. This is also its biggest one-day loss since Jan. 21.

Aldar Properties and Sorouh Real Estate both fell around 7 percent.

A late rally enabled Kuwait's benchmark to close higher for the eighth straight session, but Qatar's index ended lower as investors booked profits across the Gulf Arab region.

The Kuwait measure edged up 0.1 percent to 7,538 points. Qatar's index fell 1.4 percent to 5,510 points, retreating for the first session in four.

"It's a precarious situation, but the fact that confidence has improved should mean that profit-taking won't push the indexes back to their lows of earlier this year," said Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research.

Logistics firm Agility and Mobile Telecommunications Co (Zain) both fell more than 2 percent, but Gulf Bank surged 5.4 percent, its third day of gains after receiving permission to buy back up to 10 percent on its shares.

Qatar Gas Transport Co dropped 2.3 percent. The stock had jumped 19 percent in the previous two sessions after announcing improved first-quarter earnings.

The Bahrain index ended 0.3 percent lower at 1,676 points, ending six sessions of gains.

Oman's index closed lower to snap an 11-session streak, with Monday's reverse its largest since Jan. 21 as investors booked profits following a four percent decline on the Saudi market the previous day.

The Muscat benchmark fell 3.1 percent to 5,309 points, with Oman Telecommunications Co the stand out loser after falling 6 percent.

Bank Muscat and National Bank of Oman dropped 2.8 and 2.3 percent respectively. This duo - Oman's two largest banks by market capitalisation - have been resurgent of late, despite posting unremarkable first-quarter results and warnings of lower banking profits this year.

The bank's chairman said on Monday the lender would post a fall in second-quarter profit as it adopts a cautious approach to new lending and holds back expansion.

Saudi Basic Industries Corp (SABIC) fell 3.1 percent and bank stocks suffered similar losses as the Saudi index declined for a second day.

Rumours that SABIC would announce its first-quarter results late Sunday provoked the previous session's 4 percent reverse, analysts said.

Selling continued on Monday after quarterly profits in Saudi International Petrochemical Co (Sipchem) plunged, raising fears of a widespread earnings slump in this sector.

Petrochemicals and banking are the dominant sectors on the Saudi bourse. Sipchem was down 3.1 percent.

The Saudi benchmark fell 1.3 percent to 5,185 points, paring early losses after slumping to an intraday low of 5,097. Al-Rajhi Bank dropped 3.2 percent and Banque Saudi Fransi lost 3.7 percent.

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