Most Gulf markets fall on global gloom

 Heavyweight developer Emaar Properties dropped 3.7% yesterday as Dubai’s bourse fell 2.9% to a one-month closing low of 4,572 points.

Reuters/Dubai

Most stock markets in the Middle East fell yesterday as European stocks, which had led them up in the previous session, changed direction and US equities continued to decline.

Dubai’s bourse fell 2.9% to a one-month closing low of 4,572 points as all liquid stocks closed in the red. Heavyweight developer Emaar Properties dropped 3.7% and Dubai Islamic Bank fell 2.7%.

Abu Dhabi’s index fell 1.1%, although some stocks gained, including Union National Bank which rose 0.2% after brokerage EFG Hermes said on Monday it might secure a place in MSCI’s emerging market index next month.

“I think what’s happening in the US and international markets is pressuring the markets here in the region,” said Ali Adou, portfolio manager at The National Investor in Abu Dhabi.

The pan-European FTSEurofirst 300 Index rose in the first half of Monday’s session, helping markets in the UAE, Qatar and Saudi Arabia rebound. But it closed in the red on that day as worries about a weak global economy resurfaced, and the US benchmark S&P 500 fell 1.7% on Monday to a five-month low. European stocks then fell further on Tuesday.

Saudi Arabia’s main index fell 1.9% as most stocks, including blue chips, declined. However, some stocks, such as Saudi Cement Co, Yanbu Cement Co, Southern Province Cement Co and Eastern Cement Co, edged up.

Cement production involves heating minerals to very high temperatures and the drop in oil prices could reduce energy costs for companies in the sector.

Brent crude oil fell to a fresh low yesterday, trading at its weakest level since 2010 after the International Energy Agency cut its estimates for oil demand this year and next.

Egypt’s bourse also remained in a profit-taking mood as virtually all stocks declined and the main index fell 2.6%.

Ezz Steel was one of the few exceptions, jumping 3.4% after its subsidiary Al Ezz Dekheila Steel Co Alexandria said late on Monday that natural gas supplies to its plant had resumed.

According to Naeem Brokerage, Al Ezz Dekheila accounts for more than 90% of the parent company’s earnings before tax, interest, depreciation and amortisation (EBITDA).

Elsewhere in the Gulf, Kuwait’s index added 0.3% to 7,581 points; Oman’s bourse edged down 0.4% to 7,167 points, while Bahrain’s benchmark pulled back 0.4% to 1,459 points.