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Most Gulf markets fall on faltering global shares |
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06.10.2009, 10:29 am |
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INTERNATIONAL. Most Middle Eastern benchmarks fell yesterday as faltering global equities pushed regional investors to cash in recent gains.
The Qatar, Abu Dhabi, Oman and Bahrain indexes all suffered minor declines, together with Egypt, but Dubai’s index rebounded, together with Kuwait and Saudi Arabia.
The latter clawed back early-session losses after US stock futures pointed to a higher opening on US markets—Asian equities fell earlier in the day—and oil prices rallied.
Dubai’s index rose 1.2% to 2,004 points, its 10th advance in 11 sessions. Abu Dhabi’s index fell 1.3% to 2,788 points, its third loss in four sessions. Volumes hit an eight session low.
Saudi Arabia’s benchmark edged up 0.1% to 5,882 points. Saudi Basic Industries Corp (SABIC) rose 1.4%. Kuwait’s index climbed 0.5% to 8,228 points, ending a three-session losing streak.
Oman’s benchmark dropped 1.4% to 5,666 points. Top trader Oman Cement fell 2.1%. Bahrain’s measure slipped 0.6% to 1,607 points, its fourth reverse in five sessions.
Trading volumes in Dubai fell by more than a third from the day before, as did those in Abu Dhabi, Qatar, Oman and Bahrain, with only Kuwait’s rising. Saudi trading declined 14%.
“The slowdown in volumes isn’t a negative. It shows investors aren’t panicking,” said Shahid Hameed, Global Investment House head of asset management for the Gulf region. “Buyers are coming in at lower levels, indicating that a lot of money is sitting on the sidelines.”
“There aren’t enough investors who are able to book significant profits at current levels. When markets were at the bottom in February and March volumes were very low and so few bought at these prices,” said Jithesh Gopi, head of research at SICO investment bank.
“A lot of investors remain stuck at higher prices and much of the recent buying has been to average out prices. Some investors will want to sell at current levels, but most won’t unless economic fundamentals worsen.”
“Oil is a very important driver of local sentiment, with our fortunes closely tied to crude prices and even on a day to day basis it has an impact on investor sentiment,” said Global’s Hameed.
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Source:www.bi-me.com |
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