GCC markets remain as shaky as Obama's decision-making
Dubai’s benchmark DFM index tumbled to an eight-week low of 3.7 per cent to close at 2,397 points, its lowest finish since July 11, as retail investors cut risk after the United States moved a step closer to launching military action against Syria. Across the Gulf, markets declined in volatile trading as investors opted for short-term trades amid mounting tensions.
Abu Dhabi’s benchmark fell 2.3 per cent to 3,648 points, Kuwait’s bourse declined 2.6 per cent to 7,268 points and Qatar’s measure slipped two per cent to 9,348 points.
Saudi Arabia’s index was 1.7 per cent lower at 7,697 points.
Crude oil held above $115 a barrel on Wednesday as US lawmakers’ support for military action against Syria revived concerns that Middle East oil supplies might be disrupted if the conflict widens.
While Syria is not a big oil producer, investors are worried that a strike by Western forces against the country could spread unrest in the Middle East and disrupt supply from the region that pumps a third of the world’s crude.
Shares in Emaar fall 3.2 per cent to Dh5.3 although small and mid-cap stocks were among the biggest fallers on Wednesday.
Air Arabia and Dubai Financial Market slumped 6.2 per cent, with Arabtec Holdings and Dubai Investments down 5.6 and 5.3 per cent respectively.
- Deflation shocks in emerging markets and the GCC currency peg
- Crashing oil: has the time come for GCC countries to tax their citizens?
- Moody indeed: how did Moody's rate the ME's banks for 2015?
- The Middle East's Switzerland? Lebanon's banking secrecy is here to stay
- Precious retirement: why UAE expats are moving their pensions out of the UK
- Thanks to delayed US action, GCC markets are rebounding
- An impending frenzy? Liberalization of Saudi stock market to usher 'new era' in GCC investments
- How to better understand the often-confusing MSCI upgrade of GCC markets
- NCB Capital remains optimistic about the telecom sector despite the ongoing price-led competition