Weak oil, global bourses weigh on Gulf stocks

Weak oil prices and global bourses have pushed Gulf bourses down further on Wednesday.

Dubai’s index, which is sensitive to weak global bourses because it attracts a lot of foreign investors, declined 1.1 percent, taking its losses since the start of the week to 2.5 percent. Emaar Properties, which reported strong earnings on Monday, fell 2.6 percent.

But a 1.1 percent gain by Aldar Properties helped lift Abu Dhabi’s index 0.1 percent. On Tuesday Abu Dhabi’s largest listed developer reported a 9.7 percent rise in second-quarter net profit.

Qatar’s Gulf International Services lost 4.2 percent after the oil and gas conglomerate reported a 67.2 percent fall in second-quarter net profit to 81.8 million riyals ($22.5 million), missing the 108.1 million riyals which QNB Financial Services had forecast.

Declines in other blue chips also weighed on the main index , which closed down 1.0 percent.

SAUDI ARABIA

Riyadh’s index fell 0.5 percent to 6,238 points, dropping below technical support on the June low of 6,257 points. Another close below that level would confirm a break of support, triggering a bearish right triangle formed by the highs and lows since April and pointing down to 5,700 points.

National Commercial Bank, the biggest bank, lost 1.1 percent. Healthcare stocks outperformed, with Dallah Healthcare jumping 3.6 percent.

The insurance sector, which is usually heavily traded by short-term investors, was also strong and BUPA Arabia , a mid-cap medical insurer, rose 1.1 percent.

The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index, a measure of non-oil business activity, climbed to an eight-month high of 56.0 last month from 54.4 in June. This suggests the economy might be stabilising after a slowdown due to low oil prices and state spending cuts.

WEDNESDAY’S HIGHLIGHTS

SAUDI ARABIA

* The index fell 0.5 percent to 6,238 points.

DUBAI

* The index dropped 1.1 percent to 3,432 points.

ABU DHABI

* The index edged up 0.1 percent to 4,510 points.

QATAR

* The index decreased 1.0 percent to 10,545 points.

KUWAIT

* The index edged up 0.1 percent to 5,471 points.

OMAN

* The index edged down 0.1 percent to 5,848 points.

BAHRAIN

* The index dropped 0.5 percent to 1,156 points.

Source: Reuters