Newsmax TV & Webwww.newsmax.comFREE - In Google Play
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
Tags: kuwait | stocks | gulf | market | oil | drops

Kuwait Stocks Lead Gulf Market Drop as Oil Sinks Most in 8 Weeks

Sunday, 08 March 2015 08:37 AM EDT

 Kuwait stocks led the majority of Gulf Cooperation Council markets lower after the price of Brent crude fell the most in almost two months last week. Dubai’s shares declined.

Kuwait’s SE Price Index retreated 0.4 percent to 6,513.90, the lowest since Jan. 8. The volume of shares traded dropped to about 85 million, the weakest since July. Dubai’s DFM General Index slid 0.2 percent on less than half the 12-month daily average traded volume.

“A lot of investors are clearly in a wait and see mode on oil prices, which is reflected in the volumes,” Amer Khan, the head of asset management at Shuaa Capital PSC, said by e-mail today. “Until we see interest pick up in first quarter earnings that is likely to remain the case.”

Brent crude decreased 1.2 percent on Friday, bringing its weekly decline to 4.6 percent, the most since the five days ending Jan. 9. Oil fell as the dollar surged to an 11-year high against the euro after the Labor Department said American employers added more jobs than forecast in February, bolstering the case for the Federal Reserve to raise interest rates and reducing the investment appeal of commodities.

The six-nation GCC, which includes the United Arab Emirates, Saudi Arabia and Qatar, is home to about a third of the world’s proven oil reserves. Crude has lost 45 percent in 12 months.

14-Day RSI

The Kuwait gauge’s 14-day relative strength index declined to about 33, the lowest since Dec. 18. A level below 30 indicates to some analysts the measure is oversold and poised to rebound.

Bahrain’s BB All Share Index and Qatar’s QE Index ended little changed. Abu Dhabi’s ADX General Index was up 0.1 percent.

Emaar Properties PJSC, the builder of the Burj Khalifa, fell 0.4 percent in Dubai on less than half its three-month daily average traded volume to 7.10 dirhams, the lowest since Feb. 2. Arabtec Holding Co., the United Arab Emirates construction company in talks with the Egyptian government over a 1 million home deal, lost 0.3 percent, dropping for a sixth day to 2.9 dirhams.

The Tadawul All Share Index in Saudi Arabia, the world’s biggest exporter of crude, was up 0.5 percent at 2:33 p.m. in Riyadh. Etihad Etisalat Co. led gains, jumping 9.8 percent as 112 stocks rose, 44 declined and 13 were unchanged.

The phone operator known as Mobily extended its rally from Thursday, when it jumped the most in more than six years after overhauling top management and restating financial results. The stock has now increased 21 percent since it resumed trading on March 5, the biggest two-day jump since October 2008. The shares were suspended on Feb. 25 as the market regulator sought an explanation for a discrepancy in the company’s 2014 results.

Israel Gains

Israel’s TA-25 Index added 0.3 percent to 1,534.06, the highest since March 3. Perrigo Co., a global healthcare supplier, led the increase with a 2.4 percent jump, its biggest in a month.

Gilat Satellite Networks Ltd. surged the most since December 2013 to 21 shekels, the highest since July 2013. Peru’s Fitel awarded the company a $285 million regional telecommunications infrastructure project, its largest ever contract win.

The yield on Israel’s benchmark government bond due March 2024 increased 11 basis points, the most since Dec. 23 on a closing basis, to 1.79 percent. Investors sold treasuries after the U.S. Labor Department published better-than-forecast employment growth on March 6, increasing speculation the Federal Reserve will raise interest rates this year.

“This is tracking global markets after last week’s strong employment figures in the U.S.,” Sagie Poznerson, the head of trading at Leader Capital Markets in Tel Aviv, said by phone. “The Bank of Israel is also sending a message that it’s going to be very combative to weaken the shekel in its fight against low inflation.”

Egypt Climbs

The central bank stepped up efforts to weaken Israel’s currency when it cut the base lending rate to 0.1 percent on Feb. 23, surprising most economists. It also purchased over $1 billion in foreign currency last month. The shekel depreciated a second week, weakening to 4.0183 against the dollar on March 6.

Egypt’s benchmark EGX 30 Index rose 0.7 percent, headed to for highest close in three weeks. EFG-Hermes Holding SAE led the increase with a 2.8 percent gain.

Egypt will host an economic conference on Friday to lure investments and boost the country’s economy.

© Copyright 2023 Bloomberg News. All rights reserved.

Kuwait stocks led the majority of Gulf Cooperation Council markets lower after the price of Brent crude fell the most in almost two months last week. Dubai's shares declined.Kuwait's SE Price Index retreated 0.4 percent to 6,513.90, the lowest since Jan. 8. The volume of...
kuwait, stocks, gulf, market, oil, drops
Sunday, 08 March 2015 08:37 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved
© Newsmax Media, Inc.
All Rights Reserved