Dubai
Saudi Arabia’s Tadawul index fell more than 1 per cent on Sunday, flirting with the key 7,000 level as investors turned risk averse after news of lawsuits of $4.2 billion on a few Saudi banks.
The Tadawul index was 1.24 per cent lower at 6,989.08, after trading in the range of 6,967.97-7,076.92.
Two of the banks that were impacted due to the law suits arising due to 9/11 fell, and were among the top losers in trade.
Al Rajhi Bank fell 2.31 per cent to be at 64.25 Saudi Riyals. National Commercial Bank was 2.69 per cent lower at 37.20 riyals.
Among other losers, Alinma was down 0.07 per cent at 14.65 riyals.
Amana Insurance was 5.47 per cent lower at 18.85 riyals.
The Dubai index fell more than 1.5 per cent, leading regional losses. The Dubai Financial Market General Index closed 1.60 per cent lower at 3,453.22.
“The main reason for the sell-off was due to geopolitical risks that we are seeing. This has translated into a lot of volatility and fear in local markets,” Marwan Shurrab, head of high net worth and retail equity brokerage, Al Ramz said.
The Dubai index has been on a weaker side ever since the gauge failed to breach a key resistance or also called as the 50-day moving average. “Traders may look to stand on the sidelines and get back in only on a bullish breakout over the 50-day moving average of 3,563,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities said in a note.
Arabtec fell nearly 10 per cent at Dh0.811, still below the price of the rights, which was placed at Dh1.
Arabtec shares contributed to 18 per cent of the total traded value of Dh250 million.
Gulf Finance House closed 4.70 per cent lower at Dh2.23 after the company said its unit is buying US Virginia data centre.
The Abu Dhabi Securities Exchange General Index closed 0.69 per cent lower at 4,489.20.
“Traders may look to remain stock specific on ADX. Only a close over 4,560 level may ignite recovery,” Prakash said.
Aldar Properties closed 2.70 per cent lower at Dh2.16. “Aldar has turned bearish and may target Dh2.04 in the short term,” Prakash said.
Among other regional indices, the Qatar exchange index closed 0.19 per cent lower at 10,431.34.