Most equity indices in the Gulf Arab region ended in the red Monday, as oil prices declined in reaction to global economic worries in east and west.
The Saudi Stock Exchange, the biggest in the region by market capitalization, saw its benchmark index falling by 0.45 percent to 6,956.53 points, while the Abu Dhabi bourse ADX closed off a quarter percentage point at 3,038.94 points. Saudi Arabia and Abu Dhabi are major oil suppliers and suffered from an ongoing price decline of the black gold on Monday.
Oil prices (Oman crude) at the Dubai Mercantile Exchange (DME) fell below a three-month Monday, ending down 0.85 percent at 104. 71 U.S. dollars per barrel.
Investors were worried over a cooling of the Chinese real estate market after Beijing restricted the growth of mortgage lending, while the political impasse in Italy following elections weighed on the sentiment, too.
Earlier in the day, U.S. economist Nouriel Roubini said at the Terrapinn Hedge Funds Middle East conference in Dubai that risk awareness for equities has increased globally, although the euro zone was not out of the wood yet, with Spain and Greece being now in depression.
Abu Dhabi’s two biggest developers, Aldar Properties and Sorouh Real Estate, lost 4.50 percent and 3.20 percent, respectively. Shareholders of both developers gave Sunday green light for planned merger which would end in Sorouh’s de-listing from the ADX.
Shares of First Gulf Bank advanced gains against the trend, closing the trend by finishing Monday trading 0.40 percent higher.
Elsewhere in the region, the Manama-based Bahrain All-Share Index ended off 0.34 percent at 1,093.73.
In Dubai, the FTSE NASDAQ Dubai UAE 20 Index closed down 0.77 percent at 2189.85. Shares of Dubai Islamic Bank (DIB) declined 1. 35 percent to 2.20 Dirham (0.60 dollars). After the market’s closing, Islamic home financing firm Tamweel fell 0.87 percent at 1.14 Dirham (0.31 dollars), saying its shareholders gave the nod to DIB which had been holding the majority in Tamweel since September 2010 to take over Tamweel completely.
The Qatar Exchange 20 Index declined 0.17 percent to end at 8, 513.93 points. Shares of Ooredoo, formerly known as Qatar Telecom or Qtel Group, plummeted three percent to 112 Qatari riyal (29.12 dollars).