Lehman Brothers effect: Gulf stock markets slump
Investors in the UAE bourse saw Dh21 billion (US$5.7 billion) wiped out from the value of their shares on Monday as the Abu Dhabi bourse endured its biggest one-day decline in eight months amid panic selling following the collapse of American investment bank Lehman Brothers. Dubai Financial Market lost 1.71 per cent, and Monday's close of 4,044 points was a 55-week low. As of Tuesday noon, the DFM index continued to go down, losing 1.25 percent compared to the previous close. The DFM Index is some 32 percent below last year’s close.
The Abu Dhabi Securities Exchange saw a similar trend as it fell 4.35 per cent to 3,754 points. As of Tuesday noon the ADX index stayed almost unchanged. All in all, the Abu Dhabi market has so far lost 17.5 percent from its 2007 close of 4,551.80 points.
Other Gulf bourss also declined, with Saudi and Qatar markets reporting biggest one-day drops since January. The Saudi bourse, the largest in the Arab world, dropped 6.49 percent at close of Monday trading as the Tadawul All-Shares Index (TASI) finished at 7,255.15 points. It has lost 34.3 percent since the outset of the year. Kuwait, Bahrain and Oman exchanges also ended Monday with drops.