Panic in the Gulf after international markets dip

This includes Merrill Lynch, which said it will cancel $6bn for Q2 because of the credit crisis.

This left a deep impact on local stock markets and a state of panic prevailed among traders after foreign portfolios started extensive selling operations to cover losses abroad.

Muscat's market witnessed the worst decline by 3.6%, followed by Dubai 1.4%, Doha 1.3%, ADX 0.89%, Saudi 0.37%, KSE 0.17%, and Bahrain by 0.04%.

The biggest losses were witnessed by the banking, services and real estate sectors.

UAE: Total losses of Dhs8.5bn

UAE shares lost Dhs8.5bn after the sharp decline of Dubai Financial Market, which saw extensive selling by foreigners.

According to the DFM report, the total sales by foreigners reached Dhs261.5m against buying of Dhs97.5m.

Unlike foreign portfolios, Arab and other Gulf investors bought more today, with purchases worth Dhs54.2m against sales of Dhs38.2m.

Total foreign buying reached Dhs167.4m against sales of Dhs311m, which means loses of Dhs143.5m.

Large extensive sales were witnessed at the beginning of the session as a natural reaction to events on the international markets.

Only five shares rose up today while 25 others declined, including Emaar and Emirates NBD which dipped by 2.3% and 1.6% respectively.

The record profits announced by some companies like Ittihad Properties failed to stop the share from declining today by 2.7%.

Dubai Islamic Bank shares also fell by 1.2%, AlDar Properties by 1.2%, Sorouh by 2.1%, and Abaar by 0.89%, while Air Arabia fell by 3%.

Abu Dhabi's market also fell amid low trading below Dhs500m, which is considered a positive sign by analysts as it shows that investors are holding to their liquidity.

Saudi Arabia: Sabic leads the market

Saudi's market managed to lower its losses, closing down by 0.50% amid trading value of SR8bn of which 50% went to Maaden, which closed down by 5.7%.

The banking sector witnessed a general decline, while three shares in the petrochemical sector rose up including Sabic by 0.19%, Kayan by 1% and Al Mutaqademeh by 3%.

Analysts believe that the Saudi market, unlike the UAE and Doha which is subject to international impact, didn't have sharp decline as no foreign investors are involved.

The telecom sector, which saw considerable rise last week, witnessed a sharp decline including STC, which fell 2.1%, Mobily 3% and Zain 1%.

Muscat: Market returns to its four month mark

Muscat market witnessed a sharp decline after its heavyweight MuscatBank fell sharply by 7.4%.

Dhofar, which dominated one third of the total trading of OR18m and 18.7m shares, fell by 4.1%.

Oman National Bank also fell by 3.2% despite an 18% rise in its H1 profits.

Analysts in Oman said that an international report which criticized the performance of the banking sector left a negative impact on the market.

Doha: Banks lead the decline

Doha stock market fell sharply today after extensive pressure from banks.

Trading value declined to QR360m.

Qatar Commercial Bank fell by 3.7%, Qatar Islamic Bank by 1.9%, Al Khaliji by 0.63%, and Qtel by 1%.

Kuwait: Keeps steady after Global Co profits

Kuwait's stock exchange witnessed a low trading value below KD100m and 194.4m shares, which is considered by analysts as a positive sign as traders are trying to keep liquidity.

Leading shares fell today, including NBK by 2.1%, KFH 1.3%, Gulf Bank 1.6%, and Agility 1.7%, while Global jumped by 3.7% after posting a 76% rise in profits at KD82m.

Dubai First shares also rose up by 5.1% after a rise of 492% in H1 profits, while Mana Holding shares rose by 1.3% after 8,000% increase in H1 profits.

Bahrain: Market fails to keep momentum

Bahrain's market failed to keep its momentum amid low trading value below BD1m and 1.9m shares.

The pressure came from banking sectors, including Al Salam and Khaleeji Commercial Bank which fell by 1.1% and 0.31% respectively, while NAS and Bahrain National Bank rose by 1% and 0.12% respectively.