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Turmoil continues in Gulf markets

Volatility continued in Gulf markets on Tuesday in the wake of the Lehman Brothers bankruptcy and Merrill Lynch takeover, with early losses being recouped later in the day.

Most Gulf markets finished the day down, but losses were not as severe as at Monday's close when news of the latest crisis to hit the US financial sector broke.
"The markets continue to be affected by what's happening globally in Asia and the US stock markets," said Chahir Hosni, sales manager at EFG-Hermes.

In the UAE Dubai's benchmark ended the day 2.22 percent lower at 3,954.30 points, having fallen more than 4 percent in early trading.

The losses were paced by Shuaa Capital and Tamweel, which fell 10.91 percent and 5 percent respectively.

Dubai Financial Market Co., which had slumped more than 8 percent during the day recovered to finish 5.54 percent lower, while Emaar ended just 1.11 percent down after dropping over 6 percent earlier in the session.

In the UAE capital, Abu Dhabi's measure was one of only two Gulf indexes to close in the black. The main index finished 0.42 percent higher on 3,770.44 points helped by gains in Aldar Properties, Sorouh Real Estate and telecom Etisalat.

Aldar ended 1.14 percent higher, Sorouh 3.54 percent higher and Etisalat 3.64 percent higher. Aldar fell more than 6 percent earlier in the day.

First Gulf Bank dropped 5.62 percent and Abu Dhabi Commercial Bank (ADCB) was down 4.73 percent.

Saudi Arabia's main index closed lower, paring some losses suffered during trading, with banks leading
the decline.

Al-Rajhi Bank and Banque Saudi Fransi felll 1.32 percent and 6.62 percent respectively. Saudi Basic
Industries Corp. (SABIC) bucked the trend, rising 1.2 percent.

The benchmark, down almost 35 percent this year, declined 0.53 percent to 7,216 points.

Kuwait's benchmark was the other index to finish higher, ending 0.08 percent higher on 12,370.70 points on the back of gains by Commercial Bank of Kuwait (CBK), National Bank of Kuwait (NBK) and Global Investment House.

CBK rose 7.14 percent, NBK 5.13 percent and Global 6.85 percent.

Qatar's main index ended 0.49 percent lower on 8,176.12 points, with Qatar National Bank falling 3.04 percent and Industries Qatar dropping 0.86 percent.

In Oman the benchmark ended 3.44 percent lower on 7,900.62 points. The drop was led by National Bank of Oman, which was down 5.12 percent.

Bahrain's measure closed 0.33 percent lower on 2,490.91 points.

Global Financial markets were shaken to their core on Monday after US investment bank Lehman Brothers filed for bankruptcy protection and rival Merrill Lynch agreed to be taken over by Bank of America.

Asian and European stock markets tumbled on the news as the worries about Lehman counterparty risk and further financial market turmoil sent investors scurrying for safe havens.

All Gulf markets ended Monday lower, with Qatar's benchmark plummeting more than 7 percent, Saudi over 6 percent, Abu Dhabi more than 4 percent, Kuwait over 3 percent.

Dubai's main index ended the day down 1.7 percent, but had fallen as much as 8 percent during trading.

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