Oil worries send Kuwait stocks tumbling
The benchmark dropped 2.3 per cent to 7,491 points in early trading on Tuesday. National Bank of Kuwait fell 3.3 per cent and National Industries Group lost 5.8 per cent.
Stocks have tumbled since Kuwait's oil minister said on Sunday the country's budgetary requirements need oil prices to be above $60 a barrel.
Oil has fallen 12.9 per cent since hitting an eight-month high of $73.38 (Dh269) on June 30 as worries mount over the global economy. It is trading at $63.94 on Tuesday.
"Oil is a big drag on the market, especially since the minister's remarks," says Sunil Dhall, vice-president at Gulf Baader Capital Markets in Muscat.
"We are now in the summer US driving season when oil consumption usually peaks and so investors are worried that will happen to oil prices once this period is over, with crude not much above $60 now."
Meanwhile, Aramex has been among early gainers on Dubai's index as stocks rebound following a 12 per cent, two-week decline.
Aramex climbed 3.8 per cent, Arabtec rose 2.8 per cent and Dubai Financial Market added 2.6 per cent.
"Aramex remains the outperformer in Dubai following the re-jigging of its foreign ownership levels last week," says Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.
"I would expect non-real estate stocks with specific news flow potential to continue to see solid demand into any weakness."
Dubai's index climbed 1 per cent to 1,739 points in early trading. It slumped to a six-week closing low on Monday.
Dubai Islamic Bank also climbed 1.7 per cent after receiving a banking licence for Jordan.
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