Dubai; Crude oil prices, which tumbled below the key $60 per barrel mark, rattled equity markets in the Gulf, and the Dubai and Saudi index tumbled the most in the region.

The Dubai Financial Market General Index declined 7.27 per cent to end at 3,083.69, after falling as much as 8.2 per cent to a low of 3,052.66, a level last seen in January.

“Investors are in a panic mode. It’s a risk off period now as markets are driven by sentiment and momentum,” said Musa Haddad, equity fund manager at NBAD’s asset management group.

“The current sell-off could make 2015 a little bit difficult. At the end if we don’t see oil and Saudi markets rebounding from here, it’s going be difficult. But in terms of fundamentals it is very positive. These are very attractive in terms valuations, dividend. It just driven by other factors,” said Haddad.

Emaar Properties, which led the decline on the Dubai index, ended limit down of 10 per cent at Dh6.2 per share. Arabtec ended down 9.83 per cent at Dh2.66.

The Abu Dhabi Securities Exchange General Index ended 6.90 per cent lower at 3,892.08. The Tadawul All Share Index fell as much as 7.96 per cent before ending 7.27 per cent lower at 7,330.3.

Brent crude oil breached the keenly watched $60 per barrel by the governments in the Gulf to maintain their budgets.

Crude oil slumped about 45 per cent this year as the Organisation of Petroleum Exporting Countries sought to defend market share amid a US shale boom that’s exacerbating a global glut.

Rational investing:

UAE’s Minister of Economy, Sultan Saeed Al Mansouri, urged investors to make their investment decision in a rational manner.

“Investors should to make their decisions based on a sound analysis of the general economic situation in the country, and the performance and possibilities of growth of listed companies,” Al Mansouri said.

He said that the current decline in the market has increased the availability of attractive and tempting opportunities, and that investors can easily monitor the price-earnings ratio, taking into consideration rewarding annual cash and share dividends.

Crude oil contributes to 30 per cent of the country’s GDP, and the growth recorded during the past years is primarily due to growth in non-oil sectors, he said.

But despite of its low dependence on crude oil, the Dubai index has been leading declines in the GCC region as it is a high beta market.

The profits of national companies listed in the market have exceeded Dh48 billion during the first nine months of 2014, a growth rate of 28 per cent from the Dh37.3 billion recorded during the same period last year, Al Mansouri added.