Gulf markets slide along with oil
Crude prices continue to affect the sentiment of retail investors who dominate local markets
Gulf stock markets extended their decline in early trade on Monday after the price of Brent crude fell below $56 per barrel.
Brent futures hit a fresh 5-1/2-year low of $55.36 on Monday as worries about a surplus of global supplies amid weak demand continued to drag on oil markets.
Although Saudi Arabia, Dubai and Oman have already announced large state budgets, suggesting that lower oil revenues will not translate into spending cuts, crude prices continue to affect the sentiment of retail investors who dominate local markets.
Dubai’s index dropped 3.3 percent as all but a handful of stocks fell.
Bahrain’s Gulf Finance House (GFH) was one of the few gainers, surging 5.1 percent after the company said it had won a $11.5 million legal case pertaining to its investment in a Qatari firm.
A court in Bahrain has also dismissed a $13.8 million case filed against GFH by former chairman Essam Janahi, who resigned in 2013, it said in a separate statement.
Abu Dhabi’s index edged down 0.6 percent as Aldar Properties, the emirate’s biggest listed developer, dropped 4.4 percent.
Qatar’s bourse lost 1.9 percent in a broad sell-off, while Oman and Kuwait inched down 0.1 percent each.
- Saudi Arabia says oil policy ‘purely economic’
- Oil falls towards $57 as demand concerns outweigh supply disruptions
- Oil drops below $61 on supply glut, strong dollar
- Mideast markets may stay volatile as floor for oil still unclear
- Brent hits 5-1/2 year low of $63
- Algeria oil minister: OPEC may hold emergency meeting before June