Gulf markets downbeat after Saudi stock plunge

The kingdom's main index fell 4.2 percent on Saturday, its largest one-day drop in 10 months
Gulf markets downbeat after Saudi stock plunge
The kingdoms main index fell 4.2 percent on Saturday, its largest one-day drop in 10 months.
By Reuters
Sun 03 Jun 2012 10:23 AM

Gulf Arab markets are seen falling on Sunday following steep declines on Saudi Arabia's bourse a day earlier.

The kingdom's main index fell 4.2 percent on Saturday, its largest one-day drop in 10 months.

Petrochemicals stocks headed losers after Brent crude tumbled to a 16-month low, hurting sentiment in the world's top oil exporter, while weak U.S. and Chinese economic data also thrashed global equity markets on Friday.

"We're hostage to a high correlation with global markets and commodity prices," says Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments.

"Oil fell aggressively over the weekend and that was one of the main reasons why Saudi so sharply did yesterday.

"As the biggest Gulf market, Saudi will give a lead to other regional bourses in terms of direction. Our markets will open weaker across the board.

"I would expect to see lower turnover across all markets, although there could be some selective buying in sectors with strong fundamentals."

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