Dubai Saudi equities lead ME decline

12/21/2015 11:35:13 PM

(MENAFN- Khaleej Times)

Led by Dubai and Saudi bourses almost every Middle Eastern stock index declined after oil plummeted to its lowest level in seven years on Sunday.

Dubai's benchmark DFM General Index ended its longest winning streak in almost three months sliding 47 points or 1.53 per cent the most in a week to close at 3026.05.

The Tadawul All Share Index in Saudi Arabia sank 1.66 per cent or 118 points to close at 6928.49.

On the DFM Emirates NBD's four per cent drop was the biggest contributor.Other major losers were Amlak down 5.3 per cent Ajman Bank (five per cent) and Al Salam (8.11 per cent). Top gainers were GGICO du and Gulf Navigation.

Abu Dhabi's ADX General Index rose 0.2 per cent.

Elsewhere Kuwait's SE Price Index slipped 0.9 per cent to the lowest level since July 2004.

Bahrain's gauge retreated 0.2 per cent to the weakest level in more than two years while Oman's MSM 30 Index decreased 0.1 per cent. Qatar's stock market was closed for a public holiday.

A Bloomberg index of the leading 200 stocks in the region declined one per cent.

Egypt's benchmark EGX 30 Index climbed 0.7 per cent its fifth day of gains poised to match its longest winning streak since October.

Kuwait's government said it would proceed with plans to privatise the exchange in April selling its stake to Kuwaiti and foreign institutions and leaving itself with as little as six per cent of the bourse.

In Egypt Commercial International Bank Egypt led gains with a 2.4 per cent increase.

The fall in indices across the region reflect the crunch countries in the Gulf are feeling as the plunge in oil curbs government revenue.

Kuwait and Qatar said they will issue debt to cover rising budget deficits even as bank liquidity is drying up and somecentral banks in the region raise borrowing costs in line with the Federal Reserve. Brent crude a pricing benchmark for half the world's oil dropped to $36.88 a barrel on Fridayafter a rise in the number of oil rigs in the US signaled the supply glutthat sent prices tumbling will be prolonged

Al Rajhi Bank one of the world's largest Islamic lenders was the biggest contributor to the Tadawul's 1.5 per cent drop. The bank fell 3.4 per cent the most sinceOct. 1on a closing basis as government deposits retreated this year.

Dana Gas was the most-traded stock in Abu Dhabi after it said it will get 50 per cent of its claims in a settlement with RWE.

Issac John Associate Business Editor of Khaleej Times is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years including 23 years with Khaleej Times. A post-graduate in English and graduate in economics he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends he is respected for his astute understanding of the local business scene.

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