DUBAI: Gulf bourses fell yesterday, ensuring their worst monthly performance in over a year, as fears grew that Spanish banks may soon seek a bailout and concerns lingered over a disorderly Greek exit from the euro zone.
Doha’s index dipped 0.7 percent to its lowest close since May 20 and its biggest monthly drop since February 2011.
Investors cut risk across the board, with heavyweight Industries Qatar down 1.4 percent, Commercial Bank of Qatar falling 1.3 percent and Doha Bank slipping 1.1 percent.
“It all depends on what the outcome of Greece and Spain is — it will take a lot of time and effort on the part of the European policy makers,” said Amer Khan, fund manager, Shuaa Asset Management.
“If they default (on debt), our markets could see further downside. It won’t be fundamentally justified but the sentiment will bring further downside.”
Most major European stock markets fell again yesterday in the wake of sharp losses a day earlier after US data undermined sentiment already shaken by worries over a possible Spanish bailout.
London’s benchmark FTSE 100 index slipped by 0.18 percent to 5,306.95 points and Frankfurt’s DAX 30 was off by 0.26 percent at 6,264.38 while in Paris the CAC 40 added a slight 0.05 percent to 3,017.01 points. The CAC was down by six percent for the month of May as a whole, however.
In foreign exchange trading, the euro dropped to a 23-month low of $1.2358 from $1.2366 late in New York on Wednesday.
The single European currency also briefly fell below 97 yen in New York, the lowest level for that pair in more than 11 years.
In New York, US stocks also slid in midday trading as jobs and growth data painted a dull picture of momentum in the world’s biggest economy.
The Dow Jones Industrial Average was down 0.43 percent at 12,366.13 points.
FROM: AGENCIES
