DOHA: Most markets in the Gulf continued to decline yesterday because of the conflict in Iraq, while volatile Dubai led losses as construction firm Arabtec remained in freefall.
Qatar bourse extended its losing streak by shedding 1.65 percent. Market cap declined to QR687bn from QR696bn.
Apart from a handful of firms with major exposure to Iraq, it is not clear that the conflict will have any direct impact on Gulf economies. But coupled with the deepening conflict in Ukraine, it has hurt global equity markets as some investors start shifting into other asset classes such as precious metals and bonds. Sitting on sizeable year-to-date gains, Gulf markets are vulnerable to profit-taking.
Dubai’s index was the biggest loser in the Gulf, dropping 3.1 percent to 4,469 points and breaking through support on the May low of 4,544 points.
The emirate’s stock market had earlier outperformed the region with year-to-date gains of 60 percent in early May, making it very volatile.
Other markets in the Gulf also pulled back, but at a slower pace. Abu Dhabi’s bourse fell 1.0 percent as heavyweight Etisalat slid 1.3 percent.
The Peninsula/ Reuters
