(MENAFN- Gulf Times) Equity markets across the Middle East fell yesterday as weak oil prices depressed investor sentiment, though the Qatar Stock Exchange did better than others after index compiler MSCI increased Qatar's weighting in its emerging markets index.
The Qatar Index inched 0.1% lower as Ezdan Holding and Commercial Bank offset most of the broader market's losses. Ezdan jumped 2.6% and Commercial Bank added 0.5% after MSCI said it would increase both stocks' weightings in its emerging markets index at the end of August.
Saudi Arabia's main index dropped 2.5% to 8,464 points, its lowest close since late January, falling through technical support around 8,500 points, where it had bottomed out in March and April.
A second straight close below that level would trigger a double top formed by the March and April peaks, indicating that December's low of 7,226 points could be repeated in the coming months.
Nearly all stocks were in the red, including blue chips such as petrochemicals giant Saudi Basic Industries, which fell 2.1% despite nearing the Aug. 23 registration date for a dividend payout.
Oil shipper Bahri was one of the biggest losers, tumbling 8.3% after benchmark tanker freight rates from the Gulf to Japan dropped 3% on Friday to their lowest in more than 10 months.
Much of the latest fall in oil prices, which have plunged 30% from their May peak, occurred when many Gulf investors were away on summer holidays, and some investors may be reacting only now.
But Abdullah Alawi, assistant general manager and head of research at Aljazira Capital in Riyadh, said the depth of yesterday's market decline was surprising and, though the sell-off presented bargain-hunting opportunities, it might continue for technical reasons.
"Everyone is bracing themselves for a further downward movement," he said.
Dubai's index lost 1.4% and builder Arabtec, the most traded stock, fell 5.4% after reporting that it had swung to a net loss of 718.3mn dirhams ($196mn) in the second quarter from a 102.4mn dirham profit in the same period last year. It was Arabtec's third straight quarterly loss.
Two analysts polled by Reuters had made forecasts of 88.4mn dirhams and 90.6mn dirhams in quarterly profit.
Most other Dubai stocks also fell and heavyweight developer Emaar Properties was down 1.3%.
Abu Dhabi's main index slid 1.3% in another broad sell-off, with Eshraq Properties dropping by 2.7% after announcing a more than 90% slump in second-quarter profit to 2.4mn dirhams, citing a decline in revenue.
Egypt's bourse was down 3.2% at the close, hitting a one-month low of 7,626 points as most stocks fell.
Juhayna Food Industries tumbled 7.5% after state media said the stock exchange is poised to freeze trading in chairman Safwan Thabet's shares in the company because of alleged links to the banned Muslim Brotherhood.
The company said this would have no effect on its operations or its standing with the government. Thabet could not be reached for comment.
The sell-off also hit companies that had reported positive news, such as property developer Medinet Nasr. The stock fell 6.1% even though the company posted a 13% rise in second-quarter profit.
Elsewhere in the Gulf, Kuwait's index fell 0.6% to 6,263 points; Oman's index edged down 0.4% to 6,292 points, while Bahrain's index slipped 0.2% to 1,332 points.
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