Here it comes again: GCC markets taking the plunge one more time
Dubai’s benchmark index hit the lowest close since July 16.
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Dubai’s DFM General Index plunged 3.72 per cent to 2,489.38 points, the lowest in seven weeks, on reports of a US missile launch in the Mediterranean.
Most other regional shares also fell amid reports of a joint missile test by the United States and Israel.
Abu Dhabi’s benchmark dropped 1.83 per cent, while Doha’s index declined 0.9 per cent.
Saudi Arabia’s bourse snapped a four-session rally and lost 1.3 per cent. Regional markets staged a recovery late last week but analysts say investors were too quick to jump back into markets, while Syria’s fate is still unclear.
Dubai’s benchmark index hit the lowest close since July 16. The index dipped as much as 5.3 per cent after the missile attack report and had increased as much as one per cent before the closing.
Emaar Properties slid 5.4 per cent and discount carrier Air Arabia dropped to the lowest since July 29. The panic across Gulf markets was triggered on reports that Russia’s missile tracking system detected the launch of two ballistic rockets in the central Mediterranean, heading towards targets in the eastern Mediterranean.
Russia’s state-run RIA Novosti reported the news citing Defence Minister Sergei Shoigu.
Dubai’s shares, which gained the most in 18 months on September 1 after the US President put off a military strike against Syria, had the biggest weekly plunge since 2011.
Despite the fall Dubai’s gauge is still up 53.4 per cent year-to-date, after surging 60 per cent this year, the second-most, after Ghana. The gain comes as the economy recovered from the impact of a property crash that was sparked by the global credit crisis.
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