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Gulf stocks track weak sentiment across global markets....
Released on - Wednesday,28 October , 2009 -16:27 01
Dubai - Saudi stocks ends lower, as oil prices fall below the $80 mark and overseas markets retreat on concerns about the economic recovery.
The benchmark ended 1.4 percent lower at 6,442 points, in line with bourses in Abu Dhabi and Dubai. Heavyweight Saudi Basic Industries Corp (SABIC) falls 2.4 percent lower.
Kingdom Holding is among the few stocks that post gains, ending up 1 percent.
Property stocks were among the worst hit in Dubai and Abu Dhabi, posting strong losses and driving both markets down by around 1.5 percent.
In Abu Dhabi, Aldar Properties falls 3.3 percent. It reported a 43 percent decline in third-quarter net profit on Tuesday.
"The underlying numbers were solid, but people focused only on the bottomline," says Chamel Sahmy, regional senior sales trader at Beltone Financial.
The main index declines 1.5 percent to 3,097.
In Dubai, Union Properties, Emaar Properties and Deyaar all three decline by around 3.5 percent.
"When we talk about real estate, stocks are more active, any rebound or decline will start with the leaders, which is why there is not always a fundamental reason (behind a share price move)," Sahmy says.
Dubai's benchmark retreated 1.4 percent to 2,286 points.
"Given the lack of any major news, we are expecting a quiet month, a bit volatile, but still purely correlated to global markets," Sahmy says.
Markets in Kuwait, Bahrain and Qatar all end lower, tracking weak sentiment across global markets, as investors fret over the pace of the economic recovery.
Kuwait's index retreated 0.6 percent to 7,435 points. Zain and Kuwait Finance House each fell more than three percent.
Bahrain's benchmark fell 0.3 percent to 1,535 points.
Qatar's main market dropped 0.1 percent to 7,305 points. Doha Bank and Qatar Commercial Bank declined 1.2 percent and 0.8 percent respectively.
Oman's main index ended 0.4 percent lower to 6,462 points, giving up early gains in a market that is mostly moving sideways in the absence of any major catalysts.
The banking sector performed well, as some of the market's major banks end higher. Bank Dhofar was the strongest gainer, up 2.2 percent. Omantel fell 1.1 percent.
Source: Reuters