JEDDAH/DUBAI: Most Gulf Arab stocks tumbled yesterday, with Dubai suffering its biggest one-day decline for seven months and other indexes claiming similar milestones.
Slumping global equities and sliding oil prices spurred regional investors to sell, with Dubai's index falling 5.9 percent, its largest decline since Nov. 16. Abu Dhabi's 3.2 percent drop was its biggest for five months. Qatar lost 1.8 percent.
This trio have now declined for six of the past seven sessions, each suffering double-digit declines over this period. Kuwait edged higher, but Oman and Bahrain declined.
“It will take something major to get people back into the market and change the current trading pattern,” said Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research.
Shuaa Capital plunged 9.2 percent after ratings agency Moody's downgraded its long-term foreign and local currency issuer ratings in response to the firm's ongoing dispute with Dubai Banking Group over a $409 million convertible bond. DBG said yesterday it was starting legal proceedings.
Emaar Properties fell 8.8 percent, which means it has lost more than a quarter of its value in a little over a week.
Sharp declines in world stocks overnight and early morning soured sentiment regionally, with slumping oil prices adding to the negative mood.
Between March 9 and June 14, Qatar's index surged 70 percent, Saudi Arabia and Dubai each increased by more than a third and the Abu Dhabi, Oman and Kuwait benchmarks all made double digit gains. The benchmark Egypt stock index fell 4.2 percent to 5,620 points, its biggest one-day loss since Feb. 5 and lowest close this month.
In Saudi Arabia, the market continues its strong downward trend, with a drop of 129.72 points yesterday, bringing the Tadawul All-Share Index (TASI) to close at 5,578.95, a drop of 2.27 percent, its lowest close since April 28.
“The market continues its struggle for the fifth day in a row as market participants are vastly affected by several factors including oil prices; which have dipped to a level below $68 a barrel, the recent negative direction of the global financial markets, and the cautious stance that traders usually take as earnings season is approaching,” the Jeddah-based Financial Transaction House (FTH) said in its daily market report.
The Dubai index fell 5.9 percent to 1,839 points, its lowest close this month.
The Abu Dhabi index fell 3.2 percent to 2,657 points.
The Qatari measure slipped 1.8 percent to 6,439 points as Industries Qatar dropped 3.4 percent.
The Oman index fell 1.2 percent to 5,746 points, its biggest one-day loss for two weeks.
The Kuwaiti index edged up 0.2 percent to 8,068 points.
The Bahrain stock index dropped 0.2 percent to 1,620 points.
— With input from agencies
