Doha: Qatar Exchange was down 179.80 points or 1.89 percent to 9,356.32 points yesterday from the previous closing of 9,536.12. Among the top losers were Qatar National Bank whose share dropped 2.44 percent to QR163.90, Industries Qatar lost 1.25 percent to QR150.30, Commercial Bank of Qatar fell 0.75 percent to QR66.50 and Ooredoo was down by 3.77 percent to QR132.80.
The banking and financial sector index dropped 1.91 points, the consumer goods and services sector index lost 2.54 points, the industrial sector index was down 0.88 points while the insurance sector index was up by a point.
Meanwhile, Middle East markets slumped to multi-week lows yesterday after the United States moved a step closer to launching punitive strikes against Syrian President Bashar Al Assad following his forces’ alleged use of poison gas. Russian President Vladimir Putin signalled a readiness to drop his opposition if Damascus were proven to have carried out a chemical weapons attack.
Dubai’s bourse tumbled 3.7 percent to an eight-week low as many retail investors opted to cut their market exposure. “Everything is in risk-off mode and given the scale of the fall, this is retail investors staying cautious,” said Amer Khan, fund manager at Shuaa Asset Management.
“These are headline-driven fears as local fundamentals haven’t changed. In the medium term, even if there is a limited attack, it will benefit the UAE in terms of capital inflows - it has in the past and I don’t expect it to change now.”
Small-caps stocks that saw heavy speculative buying in recent weeks were hardest hit. Bluechips will likely outperform in the near term as investors seek companies with strong fundamentals, analysts said. Abu Dhabi’s index fell 2.3 percent and Qatar lost 1.9 percent, also hitting eight-week lows.
Kuwait’s bourse dropped 2.6 percent in its ninth straight loss to slump to its lowest finish since April 24. “The game changes a little bit now — we will have more volatility in the markets and it will be closely linked to Syria news flow,” said Sebastien Henin, portfolio manager at The National Investor.
Saudi Arabia’s measure fell 2.2 percent to its lowest close since July 3. Yesterday’s drop cut 2013 gains to 12.7 percent. The retail sector benchmark dropped 3.7 percent. The banking index fell 2.1 percent and petrochemical sector’s measure lost 1.7 percent, despite higher oil prices.
Elsewhere, Egypt’s main benchmark slipped 0.1 percent, extending 2013 losses to 5 percent. Selling was capped on the bourse as bargain hunters stepped in. Shares in Arabia Cotton Ginning surged 9.9 percent, up for a third day. Traders said the firm may transform into a real estate company and use its land holdings to build properties. Reuters
