Abu Dhabi: The GCC equity markets fell in early trade on Tuesday, with Saudi Arabia’s benchmark index leading the losses as it plunged 3.23 per cent to reach 6,766.56 following the announcement on the Saudi government’s budget deficits.
Meanwhile, the Dubai Financial Market (DFM) index fell 0.78 per cent to reach 3,095, with the index reaching a low of 3,078 just an hour after trade opened. Also in the UAE, Abu Dhabi’s benchmark index fell 0.63 per cent to reach 4,225.24.
Elsewhere in the GCC, markets were also in the red as Bahrain Bourse’s index slid 0.42 per cent to reach 1,199.34, and Qatar’s QE index dropped 1.16 per cent to reach 10,277.42.
On Monday, Saudi Arabia’s government announced an 840 billion riyal budget for 2016 – a drop from the 975 billion riyal budget this year. The announcement showed soaring budget deficits that reached 367 billion riyals in 2015.
The government said it was planning to cut spending in 2016, with cuts being seen in energy subsidies as petrol prices were hiked over 50 per cent.
