Gulf Central Banks step in to save markets from collapse

Following yesterday's decline, the UAE central bank dropped the interest rate by 0.50%, while the Kuwait Central bank lowered interest rates by 125 basic points; the Saudi Arabian Monetary Agency (Sama) meanwhile announced its readiness to pump SR50bn in to the system, while Qatar central bank issued a statement assuring traders that the economy remains solid.

The decisions, according to analysts managed, had a positive impact on the Tadawul in Saudi Arabia, where losses fell from 9% to 1.5%, while Kuwait fell by 1.4%.

Doha stock market today suffered the worst decline in the region, falling 8.7% after the index dipped below the benchmark 8,000 points, followed by Dubai Financial Market, which fell 8.5% with an average decline of 28% in four days.

Abu Dhabi Securities Exchange fell 6.4%, with total loses of Dhs39.2bn. The overall loses in the UAE when combining the DFM and ADX hit Dhs141bn in just four days.

Muscat stock market also fell below its 7,000 point benchmark, falling by 7.2%, while Bahrain fared best, declining by 2.7%.

Dubai plummets 8.5%

Traders at DFM started to panic sell shares after rumours that trading would be stopped with index down 11% and falling close to the 3,000 point benchmark.

Emaar opened at Dhs5.6 and saw its share price fall by 15% to Dhs5.11, following extensive sales by local portfolios. Foreign funds stepped in during the final 30 minutes of trading and pushed the share up to Dhs5.5 closing down by 7.4%.

Purchasing orders have disappeared for 10 shares which fell by 10%, including Arabtec, Amlak, Ajman Bank, Tabreed, Aman, Takaful and Gulf Investments. Meanwhile Shuaa Capital reversed the downward trend by rising 6.8%.

Abu Dhabi: Real estate and banks fall by maximum limit

Real estate and banks led the decline at ADX for fourth consecutive day, with leading shares including Aldar, Sorouh, First Gulf bank, Union Bank, NBAD and ADIB down by 10%. Aldar fell to Dhs5.48 and Sorouh to Dhs4.62.

Etisalat fell through the Dhs15 mark, closing at Dhs13.15 - down 7.1%.
Despite the sharp decline, shares such as 'Oman and UAE for Investments' and Fujairah bank rose by 10%.

Saudi Arabia: Sama statement lowers losses

The Saudi market looked like it was going to close down 10% after pressure on all leading shares when Sama's acting governor appeared on TV screens and announced that the government would immediately pump in SR50bn to help banks with liquidity.

The market reacted positively to the statement and began to rise, led by Sabic which rose by 5.5%, trading SR1.1bn out of total trading of SR7bn.

Other rising shares included Arab National by 4.9%, Samba 4.8% and Al Rajhi 1.4%, but many shares remained down by 10%, including Aseer, Al Sahra Petrochemicals, Budget and Yansab.

Kuwait central bank helps bourse

The same scenario was repeated at Kuwait Stock Exchange, which reduced its loses after the central bank said it would cut interest rates by 125 basic points to activate the liquidity and borrowing ability of the banks.

Banks registered strong rises, including National Bank of Kuwait, which rose by maximum limit.

Analysts say that the move by the central bank and the decision of Kuwait's Investment Authority to buy large quantities of shares helped push trading up, to KD200m and returned some trust to the market.

Most banks rose, including KFH 3.1% and Kuwait Commercial Bank 1.6%, but Zain fell by its maximum limit to near KD1 for the first time in years.

Muscat: Trade Minister's statement fails to calm market

A statement made by Oman's Minister of Trade on the strength of the economy failed to stop the index from declining, with only one share rising - 'Ports', which dominated 29% of the total trading and rose strongly to OR22m.

Many shares declined by their maximum limit. Muscat Bank fell by 3.8% to below one riyal for the first time, despite announcing strong Q3 profits of OR90.1m, up 44%. Omantel fell by 6%.

All shares fall on Doha market

All shares fell today at Doha, while the index dropped below the 8,000 point benchmark, flowing pressure on Industries Qatar and banks, which fell by almost their maximum limit.

Eight shares dominated 75% of total trading, which reached 22.5 million shares, with QNB down by 9.5%, Qatar Commercial 9.5% and Industries Qatar 9.1%.

Bahrain: Gulf Finance House back to rising

Since the beginning of the world financial crisis, Bahrain's market has suffered the least among the GCC bourses.

In trading, GFH rose 2.3%, after declining by 10% in the previous three sessions, dominating 58% of the total trading, which reached 3.6 million shares.

Meanwhile, shares such as Al Salam Bank, Ahli United and Khaleeji Bank fell by 9.6%, 7% and 6.2% respectively.