Business | Markets
Gulf shares drop tracking global markets; property stocks fall
Arabian Gulf shares declined, tracking global markets, on concern the credit crisis will topple more banks and slow global growth.
- Bloomberg
- Published: 15:07 October 8, 2008
Dubai: Arabian Gulf shares declined, tracking global markets, on concern the credit crisis will topple more banks and slow global growth.
Emaar Properties PJSC fell to its lowest in almost four years and Aldar Properties PJSC also tumbled.
Qatar National Bank, the Gulf state's biggest lender, declined the most in three days. Saudi Basic Industries Corp., the Gulf's largest company by market value, dropped for a third day.
The Dubai Financial Market General Index lost 8.8 per cent to 3,072.2 at 1:15pm local time, heading for its biggest decline since March 2006.
The Abu Dhabi Securities Exchange General Index retreated 6.3 per cent. In Qatar, the DSM 20 Index fell 8.8 per cent, the biggest drop since February 2000. Saudi Arabia's Tadawul All Share Index lost 8.5 per cent, bringing the three-day slump to 23 percent.
"The region is taking a cue from the international markets after the Dow broke a key level. That is having an impact here," Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC, said in an interview on Wednesday. "The banking sector here will also face a lot of scrutiny and investors fear the real-estate sector is a bubble."
In the US, the Dow Jones Industrial Average on Tuesday closed below 10,000 for a second day and the S&P 500 slumped below 1,000 for the first time since 2003, on speculation banks and real-estate companies are running short of money as the credit crisis worsens.
The MSCI World Index of 23 developed markets lost 2.9 per cent to 1,009.21 in London, bringing its five-day drop to 15 per cent, the steepest on a closing basis since October 1987.
Emaar Properties PJSC, the Middle East's biggest real-estate developer by market value, lost 11 percent to 5.26 dirhams, heading for its lowest close since December 2004. Aldar Properties PJSC, Abu Dhabi's biggest developer, slumped 9.9 percent to 5.48 dirhams.
The DFM Financial Banks Index slumped 7.3 percent. Dubai Islamic Bank PJSC, the United Arab Emirates' biggest bank complying with Muslim banking rules, fell 13 percent to 4.35 dirhams. Emirates NBD PJSC, the country's biggest bank, lost 5 percent at 7.47 dirhams.
Qatar National Bank dropped for a fourth day, declining 8.1 percent to 144.9 riyals. Saudi Basic tumbled 8.2 percent to 78.5 riyals, heading for its lowest close since December 2004.
Saudi Arabia's Shoura Council, an advisory body to the king, may call on the government to use funds to halt the decline in the kingdom's stock market, Al Riyadh reported, citing a council member. Kuwait Investment Authority, the country's $250 billion sovereign wealth fund, said it raised its stake in seven mutual funds investing in the Kuwait Stock Exchange and is "ready" to pump more money into the market.
The Kuwait Stock Exchange Index lost 3 percent and Oman's Muscat Securities Market 30 Index declined 7.2 percent. The Bahrain All Share Index dropped 2.8 percent.
The following stocks also rose or fell in the region. Stock symbols are in parentheses after company names:
Emirates Telecommunications Corp. (ETISALAT), the UAE's biggest phone company, declined 9.9 per cent to 13.15 dirhams. Etisalat, as the company is known, may invest in one of three Iraqi mobile-phone companies as security conditions improve in the country, the National reported, citing an official at the Abu Dhabi-based company.
Noor Financial Investment KSCC (NOOR KK), a Kuwait-based investment company, dropped 4.7 per cent to 204 fils. Noor bought a 3.9 per cent stake in Pakistan's Mezan Bank Ltd. for 1.9 million dinars ($7.1 million), boosting its overall shareholding in the lender to 45.5 per cent.
Share this article
More from Markets
More from Business
Popular in Business
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
Business Editor's choice
-
UAE companies in full force at WTM
Seventy-eight participants are from Dubai and 50 from Abu Dhabi
-
DIFC committed to high standards
Ensures an efficient process to serve the business community
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
