Middle East stock markets lost ground on Thursday after oil prices retreated and global equity prices fell on speculation the United States might raise interest rates as early as June. The Saudi stock index dropped 0.6 percent in a broad-based decline as losers outnumbered gainers by 126 to 27. Miner Ma'aden, which had been surging for several weeks on hopes it will benefit from an emphasis on developing the mining industry in Saudi Arabia's economic reform plan, dropped 2.2 percent.
The petrochemical sector also bore the brunt of profit-taking, with Saudi Basic Industries losing 1.2 percent. But retailing company Fawaz Abdulaziz Alhokair, which had been slumping because of stagnant Saudi consumer spending due to low oil prices, jumped 7.3 percent in its heaviest trade since May 2009. Dubai's index dropped 1.7 percent to 3,230 points as real estate shares, which could be hurt by higher global interest rates, sank. Emaar Properties slipped 2.5 percent.
The index fell below technical support on the late March and early May lows of 3,248-3,256 points; a second straight close below that area would confirm a break, triggering a bearish head & shoulders pattern formed by the highs and lows since March and pointing down to the 2,800-point area. Abu Dhabi dropped 1.8 percent as bluechips slid, with First Gulf Bank losing 3.3 percent. Qatar tumbled 2.0 percent, with telecommunications firm Ooredoo sinking 3.0 percent. Egypt's index slid 1.8 percent in a broad sell-off. Tourism operator Egyptian Resorts dropped 3.4 percent after an EgyptAir jet carrying 66 passengers and crew from Paris to Cairo disappeared over the Mediterranean sea. But Global Telecom, a favourite of foreign investors, rose 3.8 percent.
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