Gulf shares edge higher but remain volatile
Stock markets in the oil-rich Gulf states edged higher at the week's opener Sunday amid volatile trading as they start a new month following a rout in October linked to the global financial crisis.
After shedding around 250 billion dollars from their market value last month, the Gulf bourses closed mostly higher with the exception of the Saudi bourse which eased slightly.
Analysts blame low investor confidence for the plunge in October and for the continued frequent ups and downs in index levels.
"I believe trading will remain volatile for some time in the Gulf markets ... because the problem is psychological," said Jassem al-Saadun, head of Kuwait's Al-Shall Economic Consultants.
"We see that whenever indexes rise slightly, investors begin selling because they are afraid of the drop," Saadun told AFP.
The Saudi Tadawul All-Shares Index (TASI) closed down 1.2 percent at 5,800.99 points amid high volatility one day after it rose six percent on the week's opener on Saturday.
The Saudi bourse, the largest in the Arab world, is open from Saturday until Wednesday, while other Gulf bourses begin their week on Sunday.
decline came as the leading petrochemicals sector dropped 3.14 percent while banks were down 0.5 percent.
The Doha Securities Market jumped 5.24 percent to close above the key 7,000-point mark, with all sectors rising.
In the United Arab Emirates, the Dubai Financial Market, which was the biggest loser in the Gulf last month, finished up just 0.44 percent, still below the 3,000-point mark, after retreating from a 2.6 percent early rise.
Comments