Decline of 5 Gulf markets..Bahrain's hit an 18-month high
Gulf Market's Daily Report
Foreign investors dump Middle East stocks
Dubai's index slumped to a six-month low and Qatar's benchmark saw its largest drop in nine months on Tuesday as regional turmoil spurred further selling and rendered technical support levels obsolete, Reuters said.
Foreign investors are dumping Middle East stocks and many local investors are trying to beat them to the punch, exacerbating declines, traders said.
Dubai's index fell 2.4 percent to 1,479 points — its lowest close since Aug. 16.
Logistics provider Aramex dropped 7.4 percent. At Tuesday's close, 35 percent of its shares were held by foreigners, the second-highest total among primary listings on Dubai's bourse.
Qatar fell 3.6 percent to 8,185 points, its biggest drop since May 25 and lowest close in 12 weeks, wiping out all gains from its World Cup bid rally. Qatari stocks had soared since it was chosen to host the 2022 soccer event in December, Reuters said.
Commercial Bank of Qatar fell 9.9 percent as it went ex-dividend. CBQ was a favored Doha pick for foreign funds because it has a global depository receipt listing in London.
Credit default swaps (CDS) for Egypt climbed 19 basis points to 375 bps on Tuesday and those for Dubai rose 12 bps to 450 bps, while on Monday, Bahrain's hit an 18-month high and Qatar a 12-month peak.
Saudi Arabia's Tadawul All-Share index (TASI) dropped 0.35 percent to 6,277.03, declining for an eighth session, although it eased away from a 24-week intraday low, which may indicate selling pressure is waning. Samba Financial Group fell by 2.7 percent dairy producer Almarai by 2.3 percent.
The sector activity for the day was mostly negative with 10 out of 15 closing with lose ranging from 0.07 percent bythe Energy & Utilities sector to 1.23 percent by the Agriculture & Food Industries sector. On the other hand the gaining sectors were ranged from 0.09 percent by the Petrochemical Industries sector to 2.95 percent by the Multi-Investment sector.
The overall market breadth for the day was negative with 53 advancers against 14 decliners giving it an AD ratio of 0.67, the Financial Transaction House (FTH) — licensed by the Capital Market Authority (CMA) — said in its daily market commentary….The liquidity for the day reached SR3.14 billion.
"Our markets are not on emerging market benchmarks and so international investors sell at the first signs of a negative situation," said Rami Sidani, Schroders Middle East head of investment. "The political situation continues to dictate market performance."
The Kuwaiti index dipped 0.1 percent to 6,418 points.
The Omani index fell 1.5 percent to 6,730 points.
The Bahrain measure rose 0.2 percent to 1,468 points.