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Gulf Arab stocks finish volatile week at multi-month lows

Xinhua, November 13, 2015 Adjust font size:

Disappointing third quarter results of the region's biggest construction firm dragged down Gulf Arab markets from Dubai to Riyadh on Thursday as the oil slump and world economy worries weigh in.

The Dubai financial market (DFM) general index fell by 1.52 percent to close at a near two-year low at 3,265.28 points, as the shares of Arabtec Holding dived 9.92 percent to 1.18 dirham, or 0.32 U.S. dollar, the lowest level since April 2013.

The sellout at Arabtec happened a day after the biggest construction firm in the Middle East said it suffered in the third quarter a net loss of 257 million dollars in contrast to a profit of 18.7 million dollars in the corresponding period last year.

In a filing to the DFM, Arabtec said a "difficult" market in the region pushed the results into the red.

The local stock market DFM, the biggest in the United Arab Emirates (UAE), is the only Arab bourse publicly listed.

Amid dwindling trading volumes, DFM shares plummeted 4.92 percent to 1.16 dirham (0.32 dollar), representing the lowest level since April 2013.

UAE purchasing managers index (PMI), which measures the performance of the non-oil private sector, fell to 54 in October, the lowest since April 2013, as new orders fell amidst modest increases in employment and inventories, said Dr. Nasser Saidi, a Dubai-based economist, in his weekly economic commentary.

He added that the four largest economies in the world remain in the doldrums, with the partial exception of the United States.

Meanwhile, the price of oil (WTI) dived 2.4 percent to reach a two-month low at around 42 dollars per barrel (159 liters), weighing on the sentiment across the Gulf exchanges.

The Abu Dhabi stock market gauge ADSMI slipped 0.27 percent to 4,200 points. Abu Dhabi National Energy, also known as Taqa (the Arabic word for energy) closed off 4.76 percent at 0.40 dirham (0.11 dollar).

Taqa swung in the period from June to September to a net loss of 133.3 million dollars as revenues were hammered by low oil prices, the firm said.

Qatar saw its QE 20 index in Doha falling by 0.21 percent to end at 10,830.33.

In Riyadh, the Tadawul All-Share Index finished the Islamic week which ends on Thursdays with a decline of 0.63 percent, touching 7,083.43 points, a two and a half year low.

Economist Dr. Saidi said Saudi Arabia PMI fell to 55.7 in Oct, the lowest in the survey's history, "with output, new orders and employment sub-indices rising at weaker levels compared to the previous month." Endit