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Dubai: Another day, another fall. And when is the haemorrhaging of global stock markets going to end?
Investors across the region continued to exit Gulf markets amid fears the credit crisis is worsening and a global recession is imminent.
On the back of Asian, US and European markets suffering huge losses on Monday, with the US Dow Jones falling below the key psychological mark of 10,000, markets in the region opened lower yesterday and could not stop their continuing decline. Saudi Arabia's Tadawul ended down 7.03 per cent.
Qatar and Kuwait were no exceptions to the region's negative trend as they shed 1.55 per cent and 2.64 per cent respectively. In the Middle East, Egypt plumbed new depths, shedding 16.47 per cent to its lowest point since September 2006.
Dubai was off 5.14 per cent, Abu Dhabi 4.58 per cent.
Hammered
In UAE, real estate stocks continued to be hammered with all the major names such as Emaar Properties, Aldar Properties, Union Properties, Sorouh Real Estate and Deyaar Development and Arabtec closing down as investors feared the global decline may side-swipe the property sector.
"Global issues predominate in the current environment and the GCC markets have been unable to stave off the problems besetting global equity markets," Julian Bruce, director of Western institutional sales at EFG-Hermes, said.
"Furthermore the suggestions from some quarters of a downturn in the UAE property market, and by proxy the GCC real estate market overall, have caused some panic selling, especially amongst retail investors," he added.
Major Asian markets ended the day in the red, though the Australian central bank's rate cut brought about a slight recovery, bringing down the losses. Tokyo fell by 3 per cent, Hong Kong's stocks dropped 5 per cent and Shanghai and Mumbai were marginally down to 0.73 per cent and 0.90 per cent respectively.
Oil rebounded more than $2 after the interest cut in Australia raised hopes that other countries would opt for the same that would bolster growth and thereby see a spike in demand.
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