Weak oil and Paris attacks hit Gulf stock markets
Weak oil prices and the attacks by gunmen and suicide bombers across Paris dragged down Gulf stock markets early on Sunday, with Dubai’s index dropping below technical support.
Oil prices suffered their biggest weekly loss in eight months last week, while analysts forecast major international bourses would suffer a brief sell-off when trading resumed on Monday.
Dubai’s stock index sank 2.9 percent in the first hour of trade to 3,171 points, falling below chart support on its August low of 3,241 points. Its next support is at the December 2014 low of 2,993 points.
Abu Dhabi’s index slid 2.0 percent as Dana Gas tumbled 4.7 percent after reporting a third-quarter net loss of $9 million compared with a profit of $38 million in the same period a year before.
Qatar’s index dropped 1.2 percent as Gulf International Services lost 4.0 percent after index compiler MSCI said it would remove the stock from its emerging market index, effective at end-November.
MSCI said it would add two stocks to the index, Abu Dhabi’s Etisalat and Qatar Gas Transport Co (Nakilat) . Nakilat edged up 0.4 percent but Etisalat fell 1.3 percent.
Although investment bank EFG Hermes estimated Etisalat would attract about $547 million of passive fund inflows because of the inclusion, the stock had already gained 29 percent since June on prospects of its inclusion. It has a market capitalisation of $36.5 billion.