Gulf indices decline after slump in oil prices

Dubai: A slump in oil prices triggered weakness in stock markets across the Gulf on Sunday, with Saudi losing as much as 3.6 per cent in trade.

Brent crude fell more than 2 per cent to its lowest level in six months on Friday after the slump in Chinese markets, along with rising supplies from oil-producing countries.

Saudi Arabia’s Tadawul All Share index was 3.50 per cent lower at 8,779.65, after falling to a low of 8,768.35, a level last seen in last April.

“The fall was due to Mobily’s results and partly crude prices. The results haven’t been great from Saudi Arabia so far,” said Sanyalaksna Manibhandu, manager of Research at the National Bank of Abu Dhabi Securities.

“We would witness choppy trading in the short-term.”

Mobily swung to a second-quarter net loss due to debt provision of 800 million riyals (Dh783.2 million) relating to claims against Zain Saudi.

Elsewhere in the region, Qatar Exchange index closed 1.14 per cent lower at 11,651.26, while the Dubai Financial Market General Index closed 0.94 per cent lower at 4,104.09. The Abu Dhabi Securities Market General Index closed 0.90 per cent lower at 4,790.94 while the Kuwait Stock Exchange index also closed 0.27 per cent lower at 6,236.72.