E-mail Article
Printer Friendly
Share Article
Gulf markets fall after pull-out
Gulf Arab stocks plunged on Thursday as weaker oil prices and tensions with Iran compounded a broad selloff in emerging markets, sending some indices down as much as 4 percent and erasing all the gains of 2008.
Oman's blue chip index closed 3.88 percent lower, falling 27 percent from its lifetime high set in June.
Investors selling broad emerging markets portfolios have been forced to offload Gulf shares as well, even though oil revenues assure sustainable growth in the region, said Yazan Abdeen, fund manager at ING Investment Management in Dubai.
“The only reason for the fall in the market is that all this bad news globally is contagious. The local investor has taken refuge by not investing, taking out liquidity, while there is at the same time a seller,” Abdeen said.
Qatar's main index closed 2 percent lower. The Doha benchmark has fallen 23 percent since reaching a 2-1/2-year high on June 11, meaning that it now joins the markets of Oman, Dubai and Saudi Arabia in bear territory.
Kuwait's index closed 0.86 percent lower, having fallen 11 percent since reaching an all-time high on June 25.
“This is a much needed correction that market makers can no longer postpone,” said Naser Al-Nafisi, general manager at Al-Joman Center for Economic Consultancy.
Restrictions on consumer loans introduced by Kuwait's central bank in March and the recent fall in oil prices have had a negative effect on investor sentiment, he said.
Analysts said that local support is likely to return at the end of September, when the Muslim fasting month of Ramadan ends and many investors return to the market.
The Muscat benchmark closed 3.88 percent lower at 8,832 points. The index has fallen more than 27 percent since reaching an all-time high on June 12.
Oman Telecommunications and Bank Muscat fell 3.64 percent and 2.42 percent respectively.
The Qatari benchmark declined 2.07 percent to 10,032 points. It is down 23 percent since reaching a 2-1/2-year high on June 11.
Qatar National Bank and Industries Qatar lost 3.35 percent and 2.96 percent respectively.
Dubai's main index closed 1.25 percent lower at 4,689 points. The benchmark has closed lower for the fifth time in six trading days.
Emaar Properties shed 3.31 percent. The Abu Dhabi index eased 0.76 percent to 4,311 points, the fifth trading day in a row the index has ended lower.
First Gulf Bank shed 4.42 percent. Kuwait's main index ended 0.86 percent lower at 13,961 points, having fallen 11 percent since reaching an all-time high on June 25.
The Bahraini index closed down 0.37 percent at 2,627 points, its fifth loss in as many trading days. Gulf Finance House lost 3.9 percent.
Quick Links(Residental)
Filter by address:
No Comments