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Oil rout batters GCC equities

Dubai - The slide in oil prices has raised concern that economic growth in the GCC may stall.

Qatar's stocks declined to the lowest level in more than two years, leading a retreat across the six-nation GCC, after oil extended its slump from the lowest close since 2004.
The QE Index dropped a fourth day, slipping two per cent to its weakest close since September 2013. Saudi Arabia's Tadawul All Share Index lost 0.9 per cent at 1:27pm in Riyadh. Abu Dhabi's ADX General Index fell 1.5 per cent and Dubai's DFM General Index declined 0.7 per cent, bringing its eight-day loss to 7.3 per cent.
The slide in oil prices has raised concern that economic growth in the GCC, home to about 30 per cent of the world's proven crude reserves, may stall, curbing company profits as income from energy falls. Brent crude dropped as investors awaited US government data forecast to show oil supplies expanded and Iran announced plans to sell a new grade of crude as soon as March, exacerbating a global glut.
"We are not at a stage where investors are looking for value, they are concerned what happens to earnings if oil remains at about $20 for a few years," said Tariq Qaqish, the head of asset management at Dubai-based Al Mal Capital.
"The recent drop is significant. It's impacting investor confidence and growth potential for the region."
The Bloomberg GCC 200 Index, which tracks the 200 of the region's top companies, fell 1.1 per cent and was headed for the lowest level since December 2012. Oman's MSM 30 Index lost 0.9 per cent and Kuwaiti stocks slid 0.6 per cent, falling a seventh day.
Saudi Basic Industries Corp, one of the world's biggest chemicals manufacturers, led declines in Saudi Arabia with a 1.2 per cent retreat
First Gulf Bank, United Arab Bank and Abu Dhabi Commercial Bank led the drop in Abu Dhabi equities.
The Abu Dhabi Securities Market Banks Index slid 2.9 per cent to the lowest level since September 2013.