06/09/2013
Abu Dhabi index recorded the biggest drop in since January 2011
Gulf stocks Continue dropping for the second straight week
Gulf stock markets fell Thursday to collectively sustain losses for the second consecutive week, after coming to the United States one step further from possible military action against Syria, and raised fears of a wider conflict in the region.
The General index for Abu Dhabi Emirates fell 3 % recorded the largest drop in a single day since January 2011. The index has fallen 5.3 percent this week.
Dubai's index retreated 2.5 % to the lowest level since the 7th of July the biggest loss among Gulf markets this week by getting off 7.4%.
According to Reuters, John fakianakis of mask Saudi Investment Company said: ' it is not surprising for any one the limitations of a possible US strike, but investors expect further downward risk before the attack, uncertainty over the timing of the attack and the response of Syria's allies. Qatar stock index slipped 1.6 % registering its lowest since 24 June and down 4.3 % this week. Kuwait index fell from 0.7 per cent to 5.4 per cent weekly losses, and the market dominated by traders decreased for the tenth consecutive session recorded longest decline in 15 months. Muscat index fell from 1.4 percent to 6,362 points. Bahrain index fell 0.4 percent to 1181 points. On the other hand, the main index of the Egyptian stock exchange drops to 0.4 per cent after an attempt to assassinate Interior Minister.
Investor sentiment remains weak while the interim Government is trying to control the security situation. He said Mohammed Radwan, Director of international sales at Pharos securities: ' the market is very fragile and worn out purchases of local investors. It seems that the participation of foreigners in the market will remain limited until a clear roadmap of Government '. It is expected that the security concerns and the Syrian crisis overshadowed the stock market next week during negative sentiment to customers despite attempts by the interim Government to move forward in the implementation of the plan of transition to civil rule. After the main index lost 1.85 percent of its value this week, analysts would continue to go down next week within political events that may drive customers out of the market witch result to the fall in the index to levels below 5,000 points.
