Sabic plummets below SR100
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Sabic plummets below SR100

Sabic plummets below SR100

The Saudi market saw its worst decline yet, going down 3.4% on the week. The Saudi decline is part of a wave of falls which hit the Gulf markets and was described by Global as a 'massacre'.

    UAE shares have lost all the gains from the massive rise of DFM on Sunday of 10%, losing around Dhs18.8bn yesterday and Dhs20bn the day before after DFM index fell by 4%, while ADX fell by 2.3%.

    Doha market fell by 2.7%, Muscat 1.7%. Kuwait 0.68% while Bahrain fell by 0.20%.

    Global describes the Gulf collapse as a massacre.
    A report issued by Global Investment House described the sharp decline as a massacre as Saudi Tadawul is down 32%, DFM 34% and ADX 18%.

    The report attributed the sharp decline to the fleeing of foreign investors who were looking for profits in the local markets a year ago.

    Many foreign investors have started to sell out all they have of shares following the huge losses incurred in international and emerging markets.

    The report has also cited the corruption charges in some leading firms including Dubai Islamic Bank, Tamweel and Deyaar which have resulted in a confidence crisis in the UAE market.

    Despite the concerns, the report stressed that Gulf markets offers lucrative opportunities in the long run, adding that the international crisis which hit mainly Lehman Brothers and Merrill Lynch have been exaggerated in the regional markets.

    The report added that the impact of the international financial crisis has been felt by the local markets; Gulf markets remain immune amid such circumstances.

    Even after the sharp falls in oil prices, the region is expected to post higher growth and above expectation profits.

    Dubai: Credit Suisse lowers Emaar value

    Dubai Financial Market has ended its session down, including Emaar which fell by 3.7% to Dhs7.22, while Credit Suisse has lowered the price of Emaar from Dhs15 to Dhs9.25.

    Amlak also declined sharply by 11% and Shuaa by 11.4% amid rumours that the company is under investigation by Dubai Financial Services Authority over its deal to buy shares of DP World which listed at DIFC.

    Abu Dhabi: Aldar and Sorouh up

    The decline at ADX was led by Etisalat which fell by 3.2% despite the 45% acquisition deal of an Indian telecom firm worth US$900m.

    The index also came under pressure from the real estate and energy sectors including Aldar which fell by 1.1% to Dhs7.75 despite a Credit Suisse pricing putting it at Dhs14.4.

    Sorouh fell too by 1.6% to Dhs6.04 despite a new valuation by Credit Suisse to Dhs7.20.

    Saudi Arabia: Sabic below SR100

    Saudi market Tadawul ended its week with a sharp decline below 7.000 benchmark, losing 6.5%.
    The prices of 23 listed firms have declined by 10% including leading shares like Sabic which fell below SR100 for the first time in 15 months closing down 4.6%.

    Other shares which witnessed a sharp decline included Petrorabigh by 10% to SR38.70 and Zain by 7%.

    The decline registered at the Saudi market is attributed by analysts to the international crisis and lack of liquidity amid low trading value at SR3.8bn and 141 million shares.

    Kuwait lowers its losses

    Kuwait Stock Exchange managed to lower its losses which totaled 2% to 0.68% after support from leading shares like NBK and Kuwait Commercial Bank which closed unchanged.

    According to analysts, KSE is suffering from a lack of liquidity which pushed the Banks Association to urge the Central Bank to pump more money into the banking sector.

    Leading shares including KFH fell by 3.4%, Zain 4%, Global 1.2% while Gulf bank rose by 1.7% and Burgan by 1.1%.

    Doha: Banks and industry sectors behind the decline

    Doha stock market is only 91 points away from the 9.000 benchmark amid pressure from all shares.
    The decline was led by Industries Qatar down 3.3% and Commercial Bank which fell by 5.1% below QR100 and Doha Bank 5.5% amid low trading value at QR410m and 8.6 million shares including 4 million for Al Reyyan and Naqilat.

    Muscat market below 8.500 benchmark

    Muscat market fell below 8.500 points amid the decline of all leading shares including Muscat Bank by 3% despite trading over OR1m and one million shares out of OR1.8m and 1.6 million shares.

    Omantel fell by 1.8%, Gulfar 1.3%, National bank 0.55% and Ahli bank 3.8% while Oman International bank rose up by 0.12%.

    Bahrain: Bahrain National Bank up

    The rise of Bahrain national bank by 4.8% succeeded in lowering the decline while trading value remained weak, resting below half a million Dinars.

    GFH continued to register a decline by 3.8%, Ahli United 0.97%, AL Salam 0.94% while Ithmaar rose by 1.6% and Al Khaleeju by 0.33%.
    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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