Doha: Stock markets across the Middle East fell yesterday after oil prices dropped again and Saudi Arabia, heavily influenced by the petrochemicals sector, led losses, hitting a four-month low. Qatar Stock Exchange (QSE) index dropped 133.96 points, or 1.14 percent, when the bourse closed trading at 11,651.26 points yesterday.
The daily turnover decreased at the QSE to QR182.98m with a volume of 4,239,005 shares from 3,603 deals compared to QR193.80m with a volume of 4,429,151 shares from 3,596 deals on Thursday. The market capitalisation decreased to QR619.53bn from QR626.44bn registered on Thursday.
Insurance sector index gained 1.17 percent to 4,832.08 points.
Telecoms index lost 2.71 percent to 1,073.77 points, while Real Estate index fell 2.48 percent to 2,633.55 points.
QSE Total Return Index went down 1.14 percent to 18,110.21 points, QSE Al Rayan Islamic Index dropped 1.69 percent to 4,534.88 points and QSE All Share Index went down 1.14 percent to 3,122.30 points. From the 43 companies listed on QSE, investors exchanged shares of 42. From these four gained, 35 went down and three remained unchanged.
Elsewhere in the region, the main Saudi index sank 3.2 percent to 8,807 points, its biggest daily loss since late March, with nearly all stocks in the red. It has no significant technical support left above the April low of 8,502 points.
Petrochemicals giant Saudi Basic Industries tumbled 3.9 percent. The company’s profits have been hurt by the drop in oil prices over the last 12 months, and the commodity’s fresh weakness is a concern for investors.
US crude posted its biggest monthly drop — 21 percent — since the 2008 financial crisis on Friday after a string of losses in July triggered by China’s stock market slump and signs that top Middle East producers were pumping crude at record levels. Brent lost 5 percent on the week and 18 percent on the month.
Other companies in the petrochemicals industry also fell sharply, and the sector’s index was down 4.4 percent.
With the exception of Turkey, Saudi Arabia was seen as the most negative major Middle Eastern equities market, because of high valuations and the heavy weighting of petrochemicals.
Dubai’s bourse fell 0.9 percent and property developer DAMAC was one of just a few gainers, jumping 2.6 percent. The company said on Sunday its board would discuss second-quarter results and a dividend payout on Tuesday.
Abu Dhabi’s bourse lost 0.9 percent while Egypt’s stock index inched up in early trade but then turned negative under the pressure of selling by Arab retail investors and closed 0.4 percent lower. Ezz Steel rose 2.0 percent after Egyptian media reported that the state energy company had contracted to obtain a floating liquefied natural gas terminal that would supply the industrial sector. QNA/Reuters
