Stock markets in the Arab world continue to slide as crude oil prices hit new lows.
Abu Dhabi fell back after a slight gain in the early trade. The General Index was trading 0.05per cent lower at 1335.
Saudi Arabia’s Tadawul All Share Index fell 0.04 per cent with petrochemical industries dropping 0.39 per cent.
European benchmark Brent crude fell to an 11-year low on Monday (December 21) in response to the market conditions that emerged after the lifting of the US ban on petroleum exports last week.
As of 09:05 GMT, Brent blend was trading at $36.05 a barrel, its lowest level since 2004, while US benchmark West Texas Intermediate was at $34.43.
In a historic move, US senators lifted a 40-year ban on oil exports. The nation’s oil reserves have reached an 85-year high as a result of its shale oil boom. But the global market is already hit with oversupply as producers stepped up the oil output despite falling prices.
Trading volumes on Tadawul were thin as some investors were making no deals as they awaited the Saudi government’s 2016 budget early next month.
“Construction-related and petrochemical companies in particular are waiting for the Saudi budget before they move ahead with spending plans,” news agency Reuters said in a report.
The Qatar Stock Exchange, which resumed trading after the National Day holiday, was trading at 9,840.33 points, down from Thursday’s close at 9,912.92 points.
Meanwhile, Dubai made a rebound after trading lower at the opening. Amlak Finance, Deyaar and Air Arabia were among the top gainers while GGICO, du and Tabreed topped the list of losers on the bourse.