By Ramy Sameeh:
Cairo-Mubasher Exclusive: Arab stock markets have plummeted last week as they were weighed by the fall of global oil prices.
According to data compiled by Mubasher, eight Arab stock markets have shed more than $65 billion last week. The Saudi Stock Exchange (Tadawul) took the lion’s share with approx. $32.9 billion, followed by the UAE ($16.9 billion) and Qatar ($12.4 billion).
“The continued slides in global crude markets strongly pressured Arab markets down to very low levels,” said Mohamed Al Aasar, head of technical research, NBK Capital.
Crude prices have fallen by more than 40% since June, and slipped during the last two weeks to their lowest levels in five years, following a decision by OPEC to maintain output ceiling in order to boost market shares instead of prices.
Al Aasar told Mubasher investor worries will likely continue as regards oil till signs of recovery emerge, which will affect the performance of Arab markets over the coming period.
The analyst also expected markets to rebound this week, unless negative developments exist that may drive markets further lower.
Dubai Financial Market (DFM) led bourses with a plunge by 13.8%, which is the biggest weekly loss since December, 2008. The market closed the week at 3594.95 points, which is the lowest level in ten and a half months, pressured by property shares mainly Arabtec and Emaar.
Likewise, Abu Dhabi Securities Exchange (ADX) recorded its biggest weekly loss since December 2009, as it fell by 7.1% to 4368.31 points – the lowest level in eleven months – pressured by real estate sector that went down by more than 15%.
Muscat market also fell 11.7% to close below the 6000 barrier at 5807 points – the lowest level in twenty two months. The market was hurt by S&P’s downgrade of its outlook for the Sultanate to Negative from Stable.
Qatari shares also drifted lower 7.4% to 12748.18 points – their lowest levels in five months, amid tight liquidity.
Mohamed Al Shamairy, analyst, forecasted the Qatari bourse to continue the correction amid investors’ worries about further drops in crude prices.
Tadawul, the region’s biggest market, fell by 6.3% to 8393.92 points, after it erased a big portion of its losses on Thursday. However, the market is still at its lowest levels in thirteen months.
The market was driven lower by petrochemical and industrial stocks, mainly Yansab (-20%), SABIC (-13.6%), Kayan (-9.5%) and Saudi Group (-7.3%).
Kuwait Stock Exchange (KSE) also went down 4.6% during the week to reach a 21-month low of 6463.76 points.
Experts urged the Kuwaiti government to take an action to boost the market.
The Egyptian Exchange (EGX) traced its GCC peers, as its benchmark index EGX30 fell by 2.8% to 9196.93 points, hitting its lowest level since December-start. Market capitalization lost around EGP 14 billion ($1.95 billion).
Translated by Sayed Abdel Rahman
Photo Credit: Arabianeye-Reuters
