The 'Dubai Omen' And Global Risks Of Plunging Oil Prices:
"As the price of oil continues to fall, share prices on the Gulf region's stock markets have plummeted in parallel. The price of oil reached a yearly low of $60 a barrel on Friday, and we're now looking at a possible $50, which would create a truly bleak outlook for economic prospects in the Middle East. On Monday, the price touched a low of $56.25 before a modest rebound.
"The freefall of the price of oil has unleashed panic here," says Wafik Dawood, portfolio manager at Compass Capital in Cairo. On the Egyptian stock exchange, rates fell by 5% on Sunday. In Qatar they fell by 6%, and in Dubai 8%. The region's stock indices therefore lost most of the year's profit. In majority Muslim countries, exchanges tend to be open on Sundays and closed on Fridays.
"Morale is poor," says Sanyalak Manibhandu, head of research at NBAD Securities in Abu Dhabi. "The falling rates of the past few weeks are accelerating.""
'via Blog this'
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