(MENAFN- Muscat Daily) Following huge cuts the previous day the Muscat Securities Market (MSM) suffered another sharp fall on Monday losing 2.96 per cent to close at 5736.02 levels last seen in December 2014.
Regional markets also extended their declines as Brent crude fell below US$45 per barrel for the first time since 2009.
Saudi Arabia's Tadawul all share index which entered a bear market on Sunday led the drop to fall 6.1 per cent in Riyadh to the lowest level since March 2013. Dubai's DFM general index closed 1.4 per cent lower after plunging as much as 6.1 per cent.
Brent crude sank 3.7 per cent to US$43.79 per barrel. The MSCI world index slid for a fifth day to the lowest level since October 2014.
Global equities have lost more than US$5tn in value since China's shock currency devaluation on August 11 with US shares succumbing to the sell-off at the end of last week. The slide in Brent to the lowest in more than six years is piling pressure on Gulf states which rely on oil income to fund government spending.
'We expect local and regional equities to trade at lower levels during the coming sessions. We do anticipate the volatility to take front seat and the market may try to find a bottom from here' Gulf Baader Capital Markets (GBCM) Oman's largest brokerage firm said in a note on Monday.
GBCM expects the MSM to retest 5400-5550.
As much as RO407mn in market capitalisation has been wiped off the MSM in the past two days.
'Oil just can't stop sliding and local investors are very worried about where the bottom is and how long regional economies can take the battering' Sebastien Henin head of asset management at the National Investor in Abu Dhabi told Bloomberg.
He added 'With China's currency devaluation and concerns of a global economic slowdown equities as an asset class are just too risky at the moment and no wonder regional indexes are entering bear territory.'
The Bloomberg GCC 200 index which tracks the Gulf's top 200 equities was headed for a tenth day of declines the longest losing stretch since January 2009.
- With inputs from Bloomberg
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.