Major Gulf markets take a plunge

Banking shares dragged down Saudi Arabia’s stock market yesterday on selling ahead of the Eid holiday, profit-taking also weighed on Dubai shares despite news of new economic stimulus steps. Trading volume was high as retail investors - the majority in Gulf markets - took profits after strong gains in the past few sessions.

Eid al-Fitr lasts for about two days and falls at the end of next week. The Saudi main index fell 0.5 per cent with National Commercial Bank, the biggest lender, losing 0.5pc, and Alinma Bank giving up 1.2pc in heavy trade. Other Saudi blue-chips also fell. Top petrochemical firm Saudi Basic Industries lost 0.5pc and Saudi Arabian Mining (Ma’aden) dropped 0.7pc.

Dubai’s benchmark index was down 0.5pc, shrugging off a government announcement of economic stimulus steps, with standout loser DXB Entertainments sinking 4.8pc.

In Qatar, the main index fell 0.9pc, dragged down by Qatar Gas Transport, which dived 4.4pc in heavy trade and telecommunications firm Ooredoo which lost 2.2pc. Qatari lenders were also down and led by Qatar National Bank which lost 0.3pc. Masraf Al Rayan and Commercial Bank also dropped 0.6 and 0.9pc respectively.

Egypt’s main index was flat to higher as it was held back by telecommunications shares which have been falling on expectations that the government will cut fuel and electricity subsidies in the next financial year. Orascom Telecom fell 1.4pc and Global Telecom was down 0.7pc