Gulf markets crash after two days of resurgence

October 15th, 2008 - 10:00 pm ICT by IANS  

Dubai, Oct 15 (IANS) Gulf markets again fell Wednesday after rallying for two days over renewed fears of the global financial crisis.Except in Saudi Arabia, where the Tadawul index ended marginally up, most markets in the region started the day in the red. While some managed to recover part of the negative ground, others fell further.

The key Dubai Financial Market (DFM), which saw two of its biggest one-day gains in the last couple of days, posted the biggest loss, diving 7.44 percent from Tuesday’s close to end at 3,427.87 points.

Among the biggest losers were real estate major Emaar properties, which lost 9.88 percent of its share value and Arabtec, which fell 9.93 percent.

Low-cost carrier Air Arabia also fell 9.79 percent.

The Abu Dhabi Securities Exchange (ADX) also slumped 2.13 percent, with its key index closing at 3,525.82.

Only the Tadawul All-Share Index, the largest in the region, closed marginally higher at 6,863.15, up 0.5 percent.

Banks and financial stocks gained in the day’s trading.

The Kuwait Stock Exchange (KSE), which had failed to replicate the last two days’ upward trend in the other Gulf markers, also stayed in the red, closing at 11,719.70, down 0.64 percent from Tuesday’s close.

Another major loser was Qatar’s Doha Securities Market, which fell 3.32 percent to close at 8,098.96.

The Bahrain Stock Exchange also fell 1.05 percent while Oman’s Muscat Securities Market fell 0.35 percent.

As in other markets, the Gulf bourses also rallied for two days after a week of mayhem opening Oct 5, after the Eid-ul-Fitr holidays, triggered by the global credit crunch.

Monetary authorities in the region announced a series of steps to restore investor confidence and shore up the banking sector.

The central banks of the United Arab Emirates (UAE), Kuwait, Bahrain and Saudi Arabia announced interest rates and assurances of liquidity.

The UAE pumped in $19 billion in the last month into the country’s banking sector along with a guarantee that bank deposits would last three months.

These measures seemed to have had some effect as the markets rallied Monday and Tuesday.
But all hopes were dashed in Wednesday’s trading.

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