Most Middle East markets fall

Most Middle East markets fell on Monday as oil prices sank to their lowest in nearly seven years, spurring stock selling on the bourses of the region's energy producers. Dubai's index dropped 2.2 percent to its lowest close since December last year, although property and telecom stocks helped Abu Dhabi's bourse edge up 0.3 percent.
"Local sellers led the market lower today," said Julian Bruce, head of institutional trading at Dubai-based EFG Hermes, adding there were no market catalysts to generate buying demand. The divergence between the neighbouring Emirati benchmarks was because retail investors dumped stocks in Dubai's bourse, while foreign institutions bought shares in Abu Dhabi.
Dubai's Emaar Properties and Drake and Scull - two favourite stocks of retail traders - declined 4 and 3 percent respectively. Abu Dhabi's Aldar Properties climbed 1.7 percent on net foreign buying, according to Bruce. Brent crude prices, the globally traded oil benchmark, slumped to its the lowest since March 2009 after Opec's meeting ended in disagreement over production cuts and without a reference to its output ceiling.
Such turmoil seemed to weigh heavy on Saudi Arabia investor sentiment. Riyadh's benchmark fell 1.3 percent to 7,167 points. But it remains above the psychologically-important level of 7,000 points, having rallied from a 35-month closing low of 6,881 in mid-November. Al Tayyar Travel Group rose 0.3 percent to 74.25 riyals, although this was 2 riyals below its mid-session peak. The company announced before trading that it had bought 60 percent of local online hotel-booking company Almosafer for 22.5 million riyals ($6 million). Qatar's index fell 0.8 percent and Kuwait's benchmark dipped 0.1 percent.
Cairo's benchmark slid 0.9 percent to 6,778 points, ending a four-session rally. A break above 7,000 could spur buyers to enter the market more aggressively, according to a Cairo-based trader. "There was some profit-taking by local institutions after recent gains," said Simon Kitchen, director of regional research at Cairo-based EFG Hermes. Commercial International Bank, a foreign investor favourite, slumped 3.5 percent, as international funds sold.