Gulf indices dive on global flu pandemic

28/04/2009 00:00 AST

Stock markets in some Gulf states nosedived on Monday as flu pandemic reverberates. Saudi Arabia, Dubai, Abu Dhabi and Muscat stock indices retreated as slumping global equities convinced investors to book further profits from a rally this month.

Saudi Tadawul All Share Index shrank 0.36 percent closing at 5,420.79 points, while Dubai’s index plunged 4.3 percent.

Qatar, Kuwait and Bahrain escaped the downturn, making modest gains.

Saudi petrochemicals sector lost 1.0 percent, dragged by heavyweights SABIC, Saudi Kayan and SIIG, which closed lower by 1.7 percent, 1.4 percent and 2.8 percent respectively.

Insurance, which was the top performing sector of the day, rose 3.2 percent, led by Sanad, which surged 9.8 percent. The stock has risen 317.4 percent on a year-to-date basis. Heavyweights Tawuniya and MedGulf also gained 3.8 percent and 3.4 percent respectively.

The Dubai index fell 4.3 percent to 1,569 points. The benchmark declined for the fifth session in six. Emaar Properties dived 7.3 percent.

The index in Abu Dhabi dropped 2.8 percent to 2,475 points. National Bank Of Abu Dhabi plunged 7.7 percent after first quarter profit fell 12 percent. First Gulf Bank lost 4.3 percent despite seeing quarterly profit rise 11 percent. Aldar Properties and Sorouh Real Estate both shed more than 8 percent as investors cashed in some of April’s double-digit gains.

The benchmark in Qatar advanced for the third session running, edging up 0.3 percent to end at 5,436 points. Merger targets Barwa Real Estate and and Qatar Real Estate Co rose 3.1 and 2.1 percent respectively.

“Banks are reporting good earnings and the index is seeing a significant increase in turnover and a big rise in activity from Western funds,” said EFG’s Bruce.

The Kuwait measure climbed 0.2 percent to 7,494 points, its second straight rise. Global Investment House surged 7.8 percent as it resumed trading after the firm posted its fourth-quarter results on Sunday ending a near month-long suspension.

Kuwait Finance House closed 5.4 pct lower and Gulf Bank fell 5.6 percent.

Oman’s index closed lower for the fourth session in five, dropping 2 percent to 5,145 points. It surged 18 percent between April 1 and April 19 when it closed at a 15-week high.

Bahrain’s bourse advanced for only the second session in six, edging up 0.2 percent to 1,584 points.

Saudi Gazette