GCC bourses retreat on Brexit
By: Mahmoud Gamal
Mubasher: Gulf stock markets open Sunday’s trades in the red, after being impacted by the results of the UK’s exit from the European Union (EU).
The Saudi Stock Exchange (Tadawul) led declines, after its benchmark index retreated 3.10%, its biggest daily drop in 7 months, to 6,336.93 points by 7:20am GMT. The Dubai Financial Market (DFM) fell 3.04%, registering its largest daily drop in 6 months, to 3,265.28 points, while the Abu Dhabi Securities Exchange (ADX) lost 2.41%, the biggest drop in almost 3 months, to 4,391.51 points.
Technical market analyst Ibrahim Al-Failakawy told Mubasher that the Brexit has impacted global and oil markets, which in turn affected GCC bourses and prompted random selling on many stocks.
The Qatari and Omani bourses declined 1.9% and 0.3% to 9,780.07 points and 5,779.23 points, respectively.
By 8:10am GMT, the Egyptian Exchange (EGX) plunged 5.33% to 6,866.82 points, it steepest drop in 5 months, while the Kuwait Stock Exchange (KSE) retreated 1.7% to 5,315.34 points.
Gulf bourses are likely to see further declines in the coming period along with the breaking of several important support levels ahead of monthly market closings, market analyst Salman Al-Masoud told Mubasher.
Translated by: Nada Adel Sobhi
