Gulf markets suffer more setbacks
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Gulf markets suffer more setbacks

Gulf markets suffer more setbacks

All Gulf markets declined in trading today, some of them sharply, putting more pressures on the indices. Muscat suffered the worst decline, falling 2.6%, followed by the Saudi market, which dropped 1.8%. Elsewhere, Doha was down 1.6%, Kuwait and Bahrain 1.3% each, Dubai 0.61% and Abu Dhabi 0.17%.

    Analysts believe that local traders have so far shunned trading during Ramadan, leaving the market to foreign investors, which is pushing the markets into decline.

    The markets already suffer from a lack of liquidity, with low trading values putting extra pressure on small traders, who might start to randomly sell.

    Dubai: foreigners sell more

    Transactions on the Dubai Financial Market (DFM) remained weak; worth under Dhs500bn, including Dhs155.5m for Emaar, which fell to Dhs8.91 after extensive selling by foreign portfolios, before rallying to Dhs9 at close, still down 0.66%. on the day.

    Emirates NBD fell by 1.8% to Dhs10.80, despite its fair price being set at Dhs15.26 by Global.

    Other leading shares fell – Dubai Islamic Bank dropped 1.8% and DFM 0.26%.

    According to a DFM report, foreign sales rose to Dhs222.2m today, representing 48.3% of total trading, against buying of Dhs72.5m only.

    Abu Dhabi market supported by Abaar

    Abaar registered the highest rise of the day, gaining 5.3% and helping to minimise losses on Abu Dhabi Securities Exchange (ADX).

    Its share hit Dhs3.89 after the company announced that it will issue Dhs6.6bn of convertible bonds to AEPIC, which is fully owned by the Abu Dhabi government, which in turn will acquire 70% of Abaar shares.

    The real estate sector registered a general decline, including Aldar by 0.64%. Dana Gas rose by 1.2% and Etisalat by 0.56% to Dhs17.85.

    Tadawul: Sabic leads the market to decline

    The Saudi market saw investors start to take their profits, after strong rises over the last two weeks.

    Analysts believe that today's decline is natural, but fear the index might fall below 8,500 points.

    Fourteen of the 15 listed sectors fell; the exception being energy, which was led by Electricity which rose 2.2% amid a very low trading value, which reached only SR3.4bn.

    The decline was led by Sabic, which fell 3.1% to SR122.50, despite trading SR711.6m; other related chemical shares also fell.

    Banks also declined, expect Sabb and AlBilad. Al Rajhi fell 2.85%, Saudi Hollandi Bank 1.5% and Samba 0.22%.

    The general index decline also hit the telecom sector, with Zain and Mobily down by 2.1% each and STC 1.1%.

    Kuwait declines for second day

    Kuwait Stock Exchange (KSE) fell for the second day, although trading value improved when compared to yesterday.

    The decline is attributed to the lack of liquidity, due to initial public offerings in the market.

    The KSE closed today at 14,028 points, down 1.3% and is expected to test 14,000 points tomorrow.

    Ninety-eight listed firms declined with only 23 rising, indicating the seriousness of the problem on the market.

    All leading shares fell, including 'Industries' 3.8%, Global 3.1%, Qatar National Bank 1.1% and Agility 1%, despite acquiring Canadian logisitcs firm Geopetrol in a deal worth $8.3m.

    Muscat: Biggest loser

    The Muscat market fell sharply today, pushing the index below 9,500 points. Trading value also fell by more than 40% to OR6.5m, compared to OR10m yesterday.

    As usual, Muscat Bank and Omantel led the decline, after declining by 4.9% and 1% respectively. Only three shares rose today, including Oman International Bank by 0.14%.

    Doha rebounds for two days only

    The Doha market registered its lowest trading value since the beginning of the year, with just QR282.5m worth of shares traded after the decline of bank stocks and Industries Qatar.

    The market has been greatly affected by foreign movements, with no support from local investors amid fears that the index might fall below the 10,000 points mark.

    Industries Qatar fell by 2.6%, Qatar Islamic Bank 2.4%, Doha Bank 1.1%, Qatar International 0.53% and Khaliji 0.67%.

    Bahrain registers the biggest decline in 2008

    The Bahrain market saw its biggest decline in 2008, after sharp pressure from investments and services sectors.

    Thirteen shares declined today and six closed unchanged, while no shares rose; trading value remained below BD1m.

    Gulf Construction fell sharply by 7.2%, followed by GFH 6.2%, which also fell on the Kuwaiti market by 4.6%, despite trading 11.3 million shares out of 183.4 million shares.
    AMEinfo Staff

    AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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