Arabian Gulf equities resume decline as Asian markets, oil dip anew

Shares across the Arabian Gulf resumed their downward trajectory on Wednesday, as oil and Asian equities once again opened in the red.

Headline indexes in Dubai and Abu Dhabi erased Tuesday’s strong gains, ending down 4.6 and 3.1 per cent, respectively. Saudi Arabia’s Tadawul finished 4.9 per cent lower.

The Qatar Stock Exchange, which enjoyed its best performance in more than a year on Tuesday, closed 3.3 per cent lower.

Oil prices also resumed their slide as the International Energy Agency warned that markets would remain oversupplied until late this year. Brent crude futures, which traded just below $30 on Tuesday, retreated to around the $28 mark late afternoon on Wednesday.

Lingering concerns over a slowdown in China’s economic growth once again dragged down global equities. It drove Hong Kong’s share index to new three-year lows, with Japan’s Topix entering a bear market.

European markets opened sharply lower, with France’s Cac 40 and Germany’s Dax down about 3 per cent.

Dubai Investment and Arabtec Holding were among the worst affected stocks in Dubai, closing down 9.4 and 7.6 per cent respectively.

The Abu Dhabi bellwether FGB fell 5.4 per cent to Dh10.35, while Aldar Properties closed off 3.4 per cent at Dh1.96.

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John Everington

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