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Gulf markets sink in line with global shares on Trump win

* Saudi Arabia’s index pulled back 2.7 per cent in the first 10 minutes of trade

* Abu Dhabi’s index was down 1.7 per cent as two-thirds of the traded shares dropped

* Dubai’s market sunk 2.7 per cent as almost all traded shares pulled back

 

Stock markets in the Gulf fell sharply in line with global bourses in morning trade on Wednesday as investors faced up to a shock win by Donald Trump in the U.S. presidential election.

Saudi Arabia’s index pulled back 2.7 per cent in the first 10 minutes of trade as a little over nine-tenth of the traded shares declined.

Petrochemical shares, which have been robust over the last several weeks turned south as Brent futures were down 1.7 percent to $45.3 a barrel. Saudi Basic Industries pulled back 1.2 percent.

The banking sector was also hit, with some of the best performers over the last month the main losers; National Commercial Bank slumping 3.3 percent.

 

Click here to read: Donald Trump wins US elections 2016: What it means for MENA

 

The Gulf market’s most sensitive to foreign fund flows, Dubai’s market sunk 2.7 percent as almost all traded shares pulled back. Emaar Properties lost 3.5 percent and Dubai Investment pulled back 3.9 percent.

Abu Dhabi’s index was down 1.7 percent as two-thirds of the traded shares dropped. Blue chip First Gulf Bank was down 1.3 percent and Aldar Properties, which had reported a quarterly earning’s beat earlier this week, retreated 3.8 percent.

In Doha, nine-tenth of the top 20 most valuable shares pulled back, dragging the index down 2.2 percent. The largest listed stock by market value lost 2.4 percent.

Investors fear a Trump victory could cause global economic and trade turmoil and years of policy unpredictability, discouraging the Federal Reserve from raising interest rates in December as long expected.

 

Click here for: Here’s what the Middle East thinks of Trump