(MENAFN- Khaleej Times) Most stock markets in the Gulf fell sharply on Tuesday after oil prices hit five-year lows, triggering a fresh wave of panic selling of shares by local retail investors, though most fund managers and analysts think the region can cope comfortably with cheaper oil.
Dubai's market tumbled 3.5 per cent to 3,889 points, though it closed well above its intra-day low of 3,761 points. It rebounded from near major technical support on its July low of 3,731 points.
Developer Emaar Properties, the emirate's largest listed firm, dominated trading and closed 3.6 per cent down at Dh8.02, off its intra-day low of Dh7.50.
Trading volume in Dubai rose to its highest level in seven weeks and Gulf-based investors, who piled into the market in search of quick gains earlier this year, were big net sellers, according to bourse data.
The sell-off in Dubai and across the region came after the price of Brent crude oil hit a new five-year low of $65.33 per barrel. However, the commodity steadied later in the day and climbed above $66 by the time Dubai closed.
Dubai's index is up 15.4 per cent year-to-date, making it the second-best performer in the Gulf after Qatar , which is up 19 per cent.
Other stock markets in the region were not hit as hard as Dubai but still posted considerable losses on Tuesday. Abu Dhabi's market fell 2.4 per cent and Qatar lost 2.3 per cent.
Commercial Bank of Qatar was the only gainer in Doha, edging up 0.6 per cent after it named a new deputy chief executive and said it would slightly increase its majority stake in Turkey's Alternatifbank before that bank delists from Istanbul's bourse.
Saudi Arabia's index fell 1.8 per cent as Saudi Basic Industries dropped 4.2 per cent and most other stocks also declined.
Elsewhere in the region, Oman's index tumbled 3.5 per cent to 3,889 points and slid one per cent to 9,483 points. Kuwait fell two per cent to 6,535 points, while Bahrain slipped 0.3 per cent to 1,406 points.
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