Thursday, 22 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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