JEDDAH/DUBAI: Qatar’s index slunk to its biggest one-day reverse for 11 weeks yesterday and most Gulf markets declined on weakening global sentiment and concerns that stocks have run ahead of fundamentals.
Analysts were divided over whether yesterday’s losses marked the start of a more sustained correction or whether markets would consolidate until the second quarter results season’s start next month, with some brokers forecasting improved profits would spark another rally.
Qatar’s QSI index plunged 4.5 percent, its biggest fall since March 30 as foreign funds exited stocks, with international institutions net sellers of SR63.4 million ($17.43 million) worth of shares.
Dubai’s index fell for a third day, taking its losses to 5.4 percent since Sunday. DFMGI fell 2.8 percent to 2,079 points. Saudi Arabia’s TASI took its biggest tumble for more than a week. It fell 1.2 percent to 5,990 points.
“We continue in ‘more of the same’ mode of trading range as market players in Saudi Arabia are awaiting internal market news such as earnings reports. In the meantime, direction guidance will be given by oil, dollar and global financial markets,” said the Jeddah-based Financial Transaction House (FTH) in its daily market commentary.
Volumes fell as international and regional investors cashed out of Gulf stocks, with trading in Dubai and Abu Dhabi less than half of their week highs.
World stocks slid for a fourth day, weighing on Gulf markets, which have broadly tracked international equities in an aggressive rally that started in March.
Negative regional drivers are also spurring investors to sell stocks and switch to cash.
Egypt’s measure EGX30 fell for the first session in four, dropping 1.2 percent to 6,307 points.
Abu Dhabi’s index ADI edged up 0.1 percent to 2,863 points.
In Kuwait, the benchmark KWSE rose for the third session in four, rising 0.2 percent to 8,287 points. Volumes fell to a four-week low.
— With input from agencies