Dubai, May 25: Stock markets in the energy-rich Gulf fell sharply on Tuesday, led by the Saudi market, after oil prices declined and the euro continued its slide, traders said.
Saudi Tadawul All-Shares Index (TASI) on the largest Arab bourse shed a massive 6.75 percent to close at 5,760.33 points, pulled down by market leader petrochemicals giant Sabic.
Shares of Saudi Basic Industries Corp, which makes up one-fifth of Saudi market capitalisation, dropped the maximum allowed 10 percent, to close at 76.75 riyals (20.47 dollars), down 8.5 riyals from Monday’s close of 85.25.
One of the world’s largest petrochemical and plastics producers, government-controlled Sabic’s profitability correlates closely to prices for oil and gas, the key inputs in its production.
Europe, where the economies have been battered by the euro crisis, is also a key market for the company.
The fall Tuesday left TASI 16.9 percent below the year’s maximum of 6,929.40 points set on April 10. It is down 5.9 percent on last year’s close.
Dubai Financial Market dived 4.64 percent to finish at 1,570.34 points. Market leader, property giant Emaar lost 7.82 percent.
The other United Arab Emirates bourse of Abu Dhabi dipped 3.1 percent to close at 2,650.32 points.
Kuwait Stock Exchange, the second-largest Arab bourse, fell 2.67 percent to 6,802.10 percent as almost all the 200 stocks finished lower.
Doha Securities Market dropped 4.2 percent to 6,647.18 points. The tiny bourses of Muscat and Bahrain fell 3.16 percent and 1.9 percent, respectively.
—Agencies