Gulf markets tumble after China triggers global selloff

Stock markets across the GCC region fell sharply in early trading on Thursday after concerns over China’s slowing economy triggered a selloff in global markets, as well as a plunge in oil prices which neared levels not seen since 2004.

Saudi Arabia’s Tadawul All Share Index (TASI) was the biggest decliner by 12pm, Dubai time, as it dropped 3.8 percent to 6,271 points. All sectors opened in the red, with hotel and tourism sector stocks falling 4.42 percent.

The Saudi benchmark index extended its losses a day after it hit at a 38-month low.

The Dubai Financial Market (DFM) dropped 3.6 percent to 2,960, as Arabtec and market indicator Emaar dragged down the general index.

The Qatar Stock Exchange followed with a 3.4 percent drop to 9,725.

Meanwhile, the Abu Dhabi Securities Exchange (ADX) declined by 2.4 percent to 4,168 as real estate and energy stocks weighed on market performance.

The Kuwait Stock Exchange (KSE) saw a 1.7 percent decline to 5,470.

Bahrain’s bourse opened with a decline of 0.20 percent at 1,207 points, while Muscat Securities Market was down 0.08 percent to 5,386 points.

On Thursday,  Brent crude tumbled five percent and around $2 per barrel (bbl) to a low of $32.16/bbl. West Texas Intermediate (WTI) was down over four percent to 32.52/bbl by midday Dubai time.  A buildup in U.S. stockpiles and escalating tensions between Saudi Arabia and Iran also contributed to the drop in prices, analysts said.

The drop in oil prices came amid a sell-off across global markets on Thursday. Trading on China’s stock markets was suspended for the second time this week after the benchmark Shanghai Composite Index plunged over seven per cent.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com

Write to Joumana Saad at joumana.saad@argaamplus.com