08/06/2010
GCC stock markets continues on points declining
Gulf Market Daily Report
These losses mirrored declines in world stocks, which dipped sharply on signs the U.S. economic recovery may be slowing and new debt worries centered on Eastern Europe. Oil slipped below $70 a barrel, before clawing back much of its losses after regional markets had closed.
"Oil is coming down and will probably test supports - the euro crisis should weaken demand, which would be negative for the Gulf," said Vyas Jayabhanu, head of investments, Al Dhafra Financial Broker.
Oman slumped to a six-month low; Abu Dhabi fell for an 11th session in 12 and Qatar, Egypt, Bahrain and Kuwait also dropped. As forAbu Dhabi which fell to 0.3 percent to a 2010 low, however, and trading in the United Arab Emirates was slight.
Retail selling condemned Kuwait's index <.KWSE> to a second straight decline as volumes slumped to a 16-month low.
The Saudi index rose 1.1 percent, but its longer-term prospects remain bleak, analysts said.SABIC rose 4.6 percent to 85.75 riyals, but is down 19.7 percent since May's 19-month high as it moves in step with oil.
Bargain hunters lifted Saudi Basic Industries Corp on Monday, helping Saudi Arabia's index rise for a first day in three and Dubai edged up, but most Middle East markets declined, tracking global losses.
Moreover;Arabtec climbed 2.1 percent after the builder won three new contracts worth $203 million combined, helping Dubai's index ease away from Sunday's 14-month low.
According to Jayabhanu : "Volumes are dead - internationally, there's no positive impetus and people are contemplating whether there will be a second wave to the global crisis".
"Dubai could fall below 1,400 points - at this level, local investment houses would probably step in to support that market,"
