UAE guarantees savings and KSA lowers interest rate

Meanwhile the Dubai Financial Market authority approved lowering the loss limit to 10% instead of 15% as a temporary solution to stop continuous losses, while the Saudi Arabia Monetary Agency (Sama) announced the lowering of the interest rate following a similar step by the UAE, Kuwait and Bahrain.
Sama has also decided to lower the compulsory assets for banks from 13% to 10%.

Meanwhile Gulf stock markets continued to register sharp falls except Tadawul which rose by 0.50%, while UAE shares lost Dhs17.6bn to be added to last week's losses of Dhs130bn.

Analysts don't expect the decline of local markets to stop as long as the same continues to happen on international bourses, ruling out at the same time any positive impact of the record results announced by local companies for third quarter.

According to a report issued by Global, the recent decline at local markets was a result of the lack of liquidity and the sales of foreigners.

Doha saw the biggest decline breaking its benchmark of 7.500, down by 7.2% followed by Muscat 5.6%, Dubai 5.4%, ADX 2.35%, Bahrain 0.83% and KSE 0.40%.

Saudi market Tadawul was the only rising market following Sama's decision to lower interest rates.

Dubai: Loss limit reduced to 10%
Dubai Financial Market failed to stop the sharp decline due to the negative activities of some of the leading shares which fell by the maximum limit of 10% including Emaar, Arabtec, Amlak.

Emaar has already fallen to new record lows of Dhs5.13.

The DFM index gave up the 3.000 points mark twice yesterday while most shares registered sharp declines including Ajman Bank, Al Salam Bank, Aman, and Union Properties, while some shares were traded at their nominal value like Tabreed, Air Arabia and Gulf Shipping.

At Abu Dhabi market, the rising of Aldar and Abaar managed to lower the decline of ADX index while some shares continue to be traded down 10%.

Saudi index up on Sabic support

Saudi market Tadawul managed to end its session up after support from Sabic which rose by 8.5%, Al Rajhi 4.1% and Samba 3.6%.

Decisions taken by Sama have contributed to the stabilization of the market encouraging a number of portfolios to buy at low prices.

Telecom shares rose considerably including Mobily and Zain by 1.8% each and STC 1.3%, while some shares like Tabouk Cement and Al Hukair fell to the maximum limit of 10%.

Kuwait lowers losses after liquidity injection

KSE managed to lower its losses after new liquidity was pumped in by Kuwait's investment authority on select shares like banks and industry after the Emir of Kuwait asked the government to interfere to prevent the collapse of the local bourse.

Shares like KFH and Zain rose by the maximum limit of 10%, while Agility rose by 6.3% Commercial bank 1.5% and National Industries by 6.2%.

The value of trading also jumped to KD347.6m and 606 million shares in a clear indication of the return of liquidity to the market after the investment authority announced that it will pump KD300m in the bourse.

Doha market sees 10 firms down by maximum limit

Doha market fell sharply below the 7.500 benchmark and neared 7000 points with 37 listed shares down and only one share up.

QNB fell by 5.2% despite a 57% increase in Q3 profit and Dalalah also fell by 9.25% despite a 270% increase in profits.

More than ten firms fell by the maximum limit of 10% including Doha Bank, Dalalah, and Al Salam, while Industries Qatar fell by 7%, Qatar Commercial bank 7.2% and Islamic bank 7.7%.

Muscat loses all weekend gains

Muscat index came under pressure from some banks which fell by maximum limit of 10% including Oman International Bank and Gulfar.

Meanwhile Muscat bank fell by 7.5% below one Riyal for the first time, while Omantel rose unexpectedly by 1.6% after strong trading valued at OR3.1m from total trading of OR13.8m.

Its worth mentioning that National Company for Financial Securities rose by almost 10% despite posting losses in Q3.

Banks lead Bahrain decline

Bahrain market index came under pressure from banks, investment and services sector while the market saw improvement in trading value which reached BD3m and 4.3 million shares including 3.1 million shares for GFH which fell slightly.

Bahrain National bank fell by 10%, Al Salam 8.75% and Ithmaar 7.2%, while some shares saw considerable rise like Bahrain shipping 6.2%, Bahrain Islamic bank 4.9% and Gulf Construction 3.5%.