Business | Markets

Saudi Arabia leads losses in Gulf markets

Gulf bourses fell sharply on Monday, with real estate and bank stocks the hardest hit as worries over the global economy persisted.

  • Reuters
  • Published: 00:43 October 7, 2008
  • Gulf News

Dubai: Gulf bourses fell sharply on Monday, with real estate and bank stocks the hardest hit as worries over the global economy persisted.

Saudi Arabia's main index plummeted 9.81 per cent, its biggest one-day loss in at least 22 months.

"It's clear that the market is declining due to massive losses in the region and that's due to the falls in the US," says Abdullah Al Aqeel, equity trader at Samba Financial Group.

"Everything is hit, banks, telecoms - everything is 'limit down'," he says.

Dubai's main index fell 7.61 per cent to 3,551 points, its biggest one-day loss since March 2006 and its lowest close since April 2005, as investors fled the emirate's stricken property sector.

The Abu Dhabi benchmark ended 5.61 per cent lower, its largest one-day fall since January.

"Investors have gotten to a level where they simply don't want to be exposed to the UAE real estate market," said Mohammad Al Ami, head of the international desk in the UAE at Naeem Shares & Bonds.

The Muscat benchmark plunged almost seven per cent, its biggest single-day loss since January, with Bank Muscat and National Bank of Oman among the worst performing stocks.

"There is general panic-selling in Oman... global sentiment is affecting the market," says Adel Nasr, local brokerage manager at United Securities.

In Qatar, the main index slid more than four per cent as worries about the health of the global economy intensified an ongoing foreign selloff.

"Foreign institutions are heavily selling in the market. Some of them are exiting completely," said Amro Motasim, chief trader at Ahli Bank.

Kuwait's main index ended 3.45 per cent down, led by bank stocks and shares in Mobile Telecommunications Co (Zain), which fell 7.35 per cent, its largest one-day drop since August 2005.

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