Gulf bourses dip again on oil price concerns

Most Gulf stock markets fell further on Thursday as investors' hopes that Opec would cut oil output to boost prices waned, while Egypt's bourse rose as Cairo's government eyed savings from cheaper crude.

Brent crude fell $2 to a 50-month low under $76 after Saudi Arabian Oil Minister Ali Al Naimi told reporters late on Wednesday that the Gulf's oil exporters had reached a consensus and would not propose output cuts. Opec members met in Vienna on Thursday.

"Definitely, the speech from the Saudi oil minister did not help," said Ali Adou, portfolio manager at The National Investor in Abu Dhabi.

Saudi Arabia's stock market, where petrochemicals account for a large part of corporate earnings, stands to lose most from cheaper oil, but some investors fear that governments across the region may cut spending, which would have a knock-on effect on economies in general.

The main Saudi index fell 0.3 per cent to 9,056 points, but closed above its intraday low of 8,956 points after Saudi Basic Industries attracted buying near a 14-month low, rebounding to close 0.6 per cent higher. Some other blue chips also rebounded.

Qatar's benchmark fell 1.4 per cent with all but one stock in decline. Industries Qatar climbed 0.8 per cent, further recovering from Tuesday's 4.0 per cent drop.

UAE, EGYPT

Abu Dhabi's index lost 0.5 per cent as heavyweight lender First Gulf Bank declined 1.9 per cent.

Dubai's bourse bucked the downbeat trend, rising 1.2 per cent. Builder Arabtec Holding surged 6.2 per cent and Emaar Properties climbed 1.9 per cent.

Arabtec rose after a source with knowledge of the matter told Reuters on Wednesday that its former chief executive Hasan Ismaik plans to sell his remaining 11.8 per cent stake in the company, but will only offload the shares if he is paid at least Dh5 per share, a premium to its closing price of Dh3.97.

Emaar, which tumbled 5.3 per cent on Wednesday, rebounded ahead of November 30, which is the record date for a special dividend of Dh1.257 per share.

Egypt's index rose 1.0 per cent in a broad rally after a visiting International Monetary Fund mission said economic reforms have begun to turn the economy around after years of turmoil.

Energy importer Egypt expects to spend 25 per cent less than budgeted for on fuel subsidies this fiscal year due to a fall in crude oil prices, a top oil ministry official said on Thursday.

Thursday's highlights

DUBAI
* The index rose 1.2 percent to 4,494 points.

ABU DHABI
* The index fell 0.5 percent to 4,798 points.

QATAR
* The index slid 1.4 percent to 13,331 points.

SAUDI ARABIA
* The index fell 0.5 percent to 9,056 points

EGYPT
* The index rose 1.0 percent to 9,326 points

KUWAIT
* The index fell 0.5 percent to 6,987 points.

BAHRAIN
* The index dropped 0.3 percent to 1,437 points.  


 

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