Dubai shares led a regional decline on Monday as most Gulf Arab markets took their cues from weakness in global stocks, and Egypt's bourse fell from Sunday's six-week high. Doubts about Europe's ability to manage its debt hammered markets on Monday, knocking the euro to its lowest in two months and dragging down equities in Europe and the United States.
"Unfortunately, the world has the following to worry about now: US debt ceiling, Euro zone issues, commodities bust, potential economic slowdown and a whirl of confusion," said Haissam Arabi, chief executive at Gulfmena Alternative Investments. Dubai's index fell 2 percent to a seven-week low. It is down more than 5 percent in May.
Tabreed slumping 10 percent to a five-week low, after the district cooling firm's share dilution, which involved issuing 415.68 million shares to repay a bond. Most stocks ended lower, with Emaar Properties and Dubai Financial Market falling 3.2 and 4 percent respectively. Abu Dhabi's index slipped 0.6 percent to its lowest close since April 12 as six of the 10 largest stocks fell.
An MSCI index upgrade candidate, Qatar tumbled to an eight-week low, following the regional trend. The index ended 1.9 percent down at its lowest close since March 30. "The market's been range-bound since the end of March (from) 8,400 to 8,850 - any break out of this range should see a significant move in either direction," said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital. Heavyweights Qatar National Bank and Industries Qatar shed 2.5 and 2.8 percent respectively.
Egypt's benchmark index fell 1.3 percent from Sunday's six-week high, as investors sold off amid uncertain outlook for corporate profits in the wake of a popular uprising. Developers Talaat Moustafa Group and SODIC fell 2.1 percent and 4.7 percent respectively.
Kuwait telco Zain fell 1.9 percent, weighing on the index which ended 0.7 percent lower. Agility shed 2.6 percent and Kuwait Finance House slipped 2 percent.
Banks and petrochemicals weighed on Saudi Arabia's index, which eased from Sunday's four-month high amid declining oil prices. The main benchmark ended 0.7 percent lower, snapping a four-session winning streak as eight of the 10 largest stocks by market value fell. The top two sectors declined, with the banking index down 0.9 percent and petrochemicals falling 0.7 percent.
Saudi Basic Industries Corp) and Al-Rajhi Bank fell 0.2 and 0.7 percent respectively. Crude oil futures slipped more than $3 on Monday due to the peripheral eurozone's debt crisis, which pushed the dollar to a two-month high versus the euro and knocked broader equity markets lower.