Gulf bourses panic after foreigners flee

According to financial analysts, foreign portfolios and funds started to flee pushing bourses to decline sharply, especially as no local funds are ready to support the market.

Emaar registered a new record low today, falling below Dhs8, which is the same rate seen by Emaar three years ago.

UAE markets lose Dhs28.8bn in one session

UAE shares witnessed their sharpest losses today with the biggest decline among all Gulf markets including Dubai 4.6% and Abu Dhabi 3.7% and Kuwait 3%.

Doha market also fell by 2.8% after breaking the 10,000 points mark, while Tadawul continued its decline, falling 1.7% for the second consecutive day, while Bahrain fell by 1%.

Dubai feels the panic after banks start to sell

Dubai also witnessed a state of panic with traders rushing to sell after Emaar broke the Dhs8, falling to Dhs7.88, pushing other shares to decline further.

Emaar later closed down 8%, at Dhs8.07.

Emaar has lost 50% of its value since its highest price in January 2008 and 70% since 2005.
Emaar has been granted approval twice in the last two years to buy back 10% of its shares, but no such request is put to authorities so far.

The sharp decline of Emaar can also be attributed to orders given to investors by banks to start selling after the price went below Dhs8.

UAE markets have responded negatively to the decline of the Saudi market by more than 5%, which is a natural outcome following last week's rise.

Financial analyst Ziad Dabbas, who works as a consultant for NBAD has called on authorities to push firms, including Emaar, to buy back 10% of their shares.

Leading shares registered a sharp decline including DFM 6.4%, Arabtec 6.8%, Union Properties 7%, Shuaa Capital 5.2% and Tamweel 4.8%.

Abu Dhabi: Aldar registers the biggest decline in one session

Aldar and Sorouh registered a record decline, falling by 8.7% and 8.4% respectively.

First Gulf Bank fell to the maximum limit of 10% after the HSBC report which lowered its fair price from Dhs22.50 to Dhs20.

Saudi market fails to rebound

The Saudi market failed to rebound, while the index broke the 8.000 mark after its sharp losses of yesterday which reached 5% pushing other Gulf markets to fall.

The market tried to rebound up but failed after pressure came from all sectors while trading value remained at SR5bn and 141.9m shares.

Six listed firms fell to the maximum limit of 10% including Anaam, Sanad, Astar and Halwani Brothers.

The banking sector saw mixed results today with Saudi Hollandi up 0.43%, Riyad bank fell by 3% and AL Rajhi by 0.61%, while Samba closed unchanged.

Safco fell by 4.7%, and Sabic 2% to its lowest price in the year at SR108.

Many analysts expressed reservations regarding Sabic's decision to apply the new pricing system from next week, saying that the market is passing through turbulent period since the start of Ramadan.

Kuwait fears that the worst is still to come

The Kuwait stock exchange registered its highest decline in one session after pressure came from all sectors pushing the index to break the 14.000 mark amid fears that all the gains witnessed by the market might be lost.

All leading shares retreated including Zain 4.7%, Kuwait Projects 7%, Agility 5.3%, Global 5.4%, KFH 3.7%, NBK 2.3% and Madar 8.9%.

Doha index breaks the 10,000 mark

Doha stock index broke the 10,000 mark with pressure coming from all sectors, while trading value witnessed some improvements at 9m shares and QR489.2m.
Most leading shares fell sharply including Industries Qatar by 3.4%, QIB 4.6%, Qatar Commercial Bank 6.1% and Qatar International 3.9%.

According to analysts, foreign portfolios continued to sell which is seen as a collective escape with no support from local funds.

Muscat receives support from trade minister

After a 9% losses last week, Muscat's market rebounded today after a positive meeting between the trade minister and portfolio managers whom he urged to invest in the market.

Last week Muscat lost all the year's gains, which reached 30% with its continuous decline.

The index rebounded above 9.000 mark after support from Gulfar, Omantel and Muscat Bank, which dominated 50% of the total trading of OR11.4m and 11.7m shares.

Gulfar rose by 0.68%, Omantel 1.9%, Muscat bank 0.83%, National bank 2.4% and Sohar bank by 1.3%.

Bahrain: Al Salam registers its biggest fall

The Bahraini market came close to breaking the 2.600 mark with Al Salam bank down by 9.8%, the highest in its history despite trading one third of the total shares which reached 1.7m.

Other leading shares also fell including Ithmaar by 8.9%, Bahrain Islamic bank 4.1%, Khaleej for Construction 9.6% and Gulf United for Investments 9%.