For the third consecutive day, Gulf financial markets continued to decline. Muscat fell 2.3%, Doha 1.2%, Bahrain 0.40% and Abu Dhabi 0.15%. The Tadawul in Saudi Arabia dropped 0.99% today, and closed the week down 4.4%.
The Dubai Financial Market (DFM) and Kuwait Stock Exchange (KSE) ended up slightly, after three consecutive sessions of decline.
The DFM rose 0.70% and Kuwait 0.39%, after external forces succeeded in turning the two markets from negative to positive territory.
After the report issued by Morgan Stanley regarding real estate prices in the UAE, HSBC issued a report today warning that banks were over exposed in the real estate sector, including First Gulf Bank and National Bank of Abu Dhabi.
HSBC cut its investor recommendation on First Gulf to neutral from overweight with a price target of Dhs24.5 and lowered its price target National Bank of Abu Dhabi to Dhs20 from Dhs22.5.
Banks and real estate shares led the fluctuations experienced across Gulf markets.
Dubai: Emaar reverses trend
The Dubai Financial Market began the day down, with pressure on Emaar, which fell below Dhs9 to Dhs8.99. But as the day progressed, Emaar received buying orders amid a low trading value of Dhs309.6m, including 61 million shares for Emaar, which closed up 0.77% to Dhs9.07.
Emirates NBD and Dubai Islamic Bank (DIB) rose 1.3% and 0.29% respectively, which pushed the index up further, helped in particular once DIB announced its intention to acquire 52% of Jordan's Industrial Development Bank in a deal with Dubai Capital.
Abu Dhabi under pressure from banks
Abu Dhabi Securities Exchange (ADX) failed to rebound today, because of negative movement by banks and Fujairah Construction falling sharply by its maximum limit of 10%.
First Gulf Bank fell 2.7% to Dhs22.10, while National Bank of Abu Dhabi closed unchanged.
Abaar continued to rise, gaining 1.2% after APIC acquired 70% of its shares in a deal worth Dhs6.6bn.
Saudi Arabia registers 4.4% weekly decline
The Tadawul ended its week down 4.4% and its day down 0.99% after the market fell further in the final 30 minutes of trading. Trading value was around SR3bn, representing 66.3 million shares.
The index came under pressure from all leading shares, pushing it to approach the 8,500 points. The decline of Sabic by 2% to SR120 had a negative impact on the whole market.
All banks declined, including Al Jazira by 3.3%, Arab National Bank 2.9% and Samba 1.6%.
Mobily registered a 3.8% decline in the market; STC was down 0.77% and Zain closed unchanged.
Kuwait up after 7 declining sessions
Kuwait Stock Exchange reversed its fortunes in the last 30 minutes of trading and rose up after seven sessions of decline.
Dealers said that selective buying on certain shares pushed the index to stay above 14,000 (it was at 15,500 points in the first quarter of 2008).
All leading shares rose, including Zain by 1.2%, Global 1.1%, NBK 1.1% and KFH 0.72%, while speculation is back on Manah Holding, pushing it up 6%.
Muscat fears fall below 9,000 points
Muscat stock index is approaching a new support level of 9,000 points after a sharp decline today.
As usual, the decline was led by three leading shares, namely Muscat Bank, Omantel and Gulfar, which all fell by 1.6%, 2% and 1.9% respectively.
The index was also under pressure from the banking sector, which retreated sharply, including Sohar by 1.6%.
Doha continues to decline
The Doha market continued its downward trend, with pressure from Industries Qatar, which fell by 1.4% and Qatar National Bank which fell by 2.1%.
The index is testing a new support level of 10,000 points, which many fear the market might break.
Bahrain down while trading value up
The decline in Bahrain was led by banks, Batelco and ARIG amid an improvement in trading value, which rose to BD1.4m and 1.5 million shares.
This included one million share to TAIB bank, which rose 7%. Bank of Bahrain and Middle East fell by 10%, followed by Ahli United Bank 2.5%, ARIG 2.1% and Batelco 1.4%. GFH rose by 2.6% after heavy losses in the last three sessions.