Wednesday 21 January 2009

Markets at four year low

Stock markets in Abu Dhabi and Dubai slumped to their lowest levels in more than four years yesterday after oil dipped below US$33 and poor fourth-quarter results confirmed the global financial crisis is hurting the region.

The sell-off was triggered by Saudi Basic Industries Corporation (SABIC), one of the world’s largest petrochemical firms, which reported a 95 per cent drop in fourth-quarter profit. SABIC shares tumbled 9.8 per cent, leading declines on all seven bourses in the Gulf.

“SABIC is a bellwether stock, not only in Saudi Arabia but for the entire Gulf, and markets will take a cue from it,” said Shakeel Sarwar, the head of asset management at SICO investment bank, based in Bahrain.

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