Mideast markets in bearish territory as investors continue sell-off
The Dubai Financial Market General Index remained in bearish mood for a second consecutive day, closing down 2.13 per cent at 3,584.59 points.
Stock markets across the Middle East fell on Tuesday alongside steep drops in global stock prices because of renewed uncertainty about the state of China's economy.
Stock markets fell after data showed China's manufacturing activity had contracted in August at its fastest pace in three years, reinforcing fears of a slowdown in the world's second-largest economy despite a flurry of government support measures.
The Dubai Financial Market General Index remained in bearish mood for a second consecutive day, closing down 2.13 per cent at 3,584.59 points. The benchmark index lost 15.84 per cent last month, extending its bearish trend in September.
Abu Dhabi's main index fell 2.64 per cent at 4,375.24 points as property shares led by Aldar Properties caused the decline. Aldar Properties dropped 4.72 per cent at Dh2.22 while Eshraq and RAK Properties fell 4.7 per cent and 1.79 per cent, respectively. The main index shed 7.04 per cent in August.
Saudi Arabia's main stock index fell 1.1 per cent with all sectors in the red. China is the second-biggest market for the Kingdom's exports and a hard landing for its economy would have a big impact on Saudi Arabia. Qatar's index was down 1.3 per cent, Egyptian stocks were down 0.7 per cent and Kuwait's main index slipped 0.4 per cent to 5,798 points. Oman's benchmark index lost 1.1 per cent to 5,805 points.
In Asian trade, Nikkei fell 3.8 per cent and Hong Kong's Hang Seng ended down 2.2 per cent. Stocks also fell in South Korea and Australia.
European equities also declined sharply. The FTSEurofirst 300 index of top European shares was down 2.9 per cent at 1,390.50 points by 14.28GMT. Germany's DAX, which has substantial exposure to China, fell 2.5 per cent. US stocks also followed the bearish trends in Asia and Europe and traded sharply lower on Tuesday as poor manufacturing data from China sparked another round of global equity selloffs.
An hour into trade, the Dow Jones Industrial Average was down 333.32 points (2.02 per cent) at 16,194.71.
The broader S&P 500 lost 38.00 points (1.93 per cent) at 1,934.18, and the Nasdaq Composite gave up 75.25 (1.58 percent) at 4,715.27 points.
The new round of market turmoil, which saw major European bourses losing more than 2.5 per cent, came after
Patrick O'Hare of Briefing.com said that it was not only Chinese data driving sellers; PMIs in the United States, Japan, India, Italy, France, Spain, and the eurozone have all showed a deceleration in economic activity.
Together they "have added to the market's angst about economic growth prospects," he said.
- With inputs from agencies
Eros Group would like to congratulate the leaders of the UAE on the commencement of the Expo 2020. Life-changing technological advances...
UAE to lead uneven GCC economic growth in 2022 READ MORE
Launched in 1984, the St Kitts and Nevis’ citizenship by... READ MORE
A Capital.com CFD account offers tight spreads, zero commission and... READ MORE
Event has drawn participation of over 3,500 exhibitors from more than ... READ MORE
26 pavilions will participate in this year’s cultural... READ MORE
Emirates, Etihad and other carriers will host major recruitment... READ MORE
They met at the UAE pavilion at the mega fair READ MORE