(MENAFN- The Peninsula) Qatari bourse remained under pressure yesterday, with the stocks extending declines amid continuing slide in the oil price. As investors grew increasingly nervous about the slump in oil prices, the entire sector indices plunged, pushing the benchmark index down 1.53 percent, or 183 points, to finish 11,811.
Real estate was hit with particularly hard as it tumbled by 3.57 percent. Ezdan plunged 4.44 percent. Barwa, which announced it has concluded the purchase and transfer of the 50 percent shareholding of the Lusail Golf Development Company through its subsidiary Barwa International, slid 3 percent.
Telecoms and Transportations sectors slipped 2.45 percent and 2.13 percent, respectively. While Insurance sector edged 1.76 percent down, Banking sector lost 0.96 percent. Industrials was down by 0.94 percent.
The sell-off continued amid a further drop in oil prices with Brent crude down a six year low. The falling oil price is exacerbating fears of investors, market watchers told The Peninsula.
The oil sensitive-stocks Gulf International and MPHC got hammered by 3.19 percent and 1.91 percent respectively. "Investor sentiment is hurt by unclear vision in the market and falling oil prices below $53," Arabic business portal Mubasher quoted an expert as saying.
He advised investors to be cautious amid deterioration in global oil and stock markets.
With the earnings season on its way, the market is expected to recover its lost ground in the coming weeks. Leading banks are scheduled to hold their respective board of directors meeting in the coming weeks to discuss their annual financial results. The Board of Directors of QIB is scheduled to meet on January 18. The directors of Doha Bank and Masraf Al Rayan will meet on January 20 and 26 respectively, according to their regulatory filings to Qatar Exchange.
Gulf stock markets also extended their losses as Brent crude plunged and the threat of a fresh eurozone crisis in Greece also prompted investors to sell risky assets globally, Reuters reported.
Saudi Arabia's main index dropped as much as 4 percent in a broad sell-off early in the session, but then pared its losses and closed only 0.6 percent down. Dubai's bourse dropped 3.2 percent. Emaar Properties, the emirate's largest listed developer, topped trading volume as it lost 5.8 percent.
Abu Dhabi's index fell 2.7 percent, Kuwait lost 1.5 percent and Oman's bourse slipped 1.3 percent. Kuwait index fell 1.5 percent to 6,398 points. Oman edged up 0.3 percent to 1,426 points.
Egypt's market dropped 2.4 percent. As an oil importer, Egypt should benefit from cheaper crude, but its equities are also vulnerable to global emerging market flows and Cairo's government relies heavily on financial aid from the oil-exporting Gulf states, which could conceivably shrink if they become more cautious about spending.
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