Saudi slips up as global economy worsens
Saudi Arabia's economy takes a hit as fears grow for global economy
Click here to add Dubai as an alert
Disable alert for Dubai,
Click here to add Farouk Miah as an alert
Disable alert for Farouk Miah,
Click here to add International Monetary Fund as an alert
Disable alert for International Monetary Fund,
Click here to add National Bank of Abu Dhabi as an alert
Disable alert for National Bank of Abu Dhabi,
Click here to add NCB Capital as an alert
Disable alert for NCB Capital,
Click here to add UAE Central Bank as an alert
Disable alert for UAE Central Bank
Saudi Arabia's benchmark slumped to a fresh 10-week low yesterday as investors fretted that a gloomier outlook for the global economy would lead to lower oil receipts for the worlds top crude exporter.
Other Middle East markets were mixed, with investors cautious as third-quarter earnings season got under way.
The International Monetary Fund cut its growth forecasts for the second time in six months yesterday, warning the global economic slowdown was worsening.
"This will obviously put some pressure on (Saudi Arabia's) petrochemical sector," said Farouk Miah, head of research at NCB Capital. "Fundamentally, there are concerns and added to that are the geopolitical issues that are continuing in the region." In Bahrain, the measure declined 0.6 per cent to 1,062 points hurt by weak trading in the services and banking sectors.
Saudi's index fell 0.3pc, its fourth decline in five sessions to take its losses since Sept. 15s four-month high to 5.2pc. Oil has fallen 8.7pc over the same period.
The petrochemicals benchmark eased 0.08pc, down 5.5pc for 2012.
Egypt's main index fell 0.4pc to a four-week low, extending losses following Sunday's 2.4pc decline.
In the United Arab Emirates, National Bank of Abu Dhabi (NBAD) rose 0.5pc after it said the UAE central bank had extended a deadline for banks to comply with new lending limits to state-linked companies.
The original deadline was Sept. 30, but commercial banks will now have an extra six months, NBAD said.
Dubai's index rose 0.08pc, but gave back early-session gains. It hit a 23-week closing high on Sunday, but fell 1.1pc the day after.
- Will terror attacks damper Arabs' appetite for European holidays?
- So cool it's hot: Saudi Arabia's $3.2B HVACR market driven by construction boom
- US, EU protectionist policies may be a blessing in disguise for GCC suppliers
- Dubai to Doha: How far can you stretch your dirham?
- OPEC's poor history of compliance will make production cut deal a challenge
- Iraqi oil exports surge to 23-week high
- Dubai rents up 3pc; Bahrain down 18pc
- Deadline Down to Less Than a Week as NCB is Set to Close Low-risk Fund to New Investors
- The chicken and the egg: Goldman Sachs oil price slashed forecast brings prices down to six year low
- Extended losses: Gulf markets slide as oil plunges below $55