• Home
• /
• Local business

Gulf Shares Retreat on Oil

DUBAI - Gulf shares declined after crude oil fell a fourth day, raising concern lower oil prices may hurt government spending in the region. The Dubai Financial Market General Index gained 0.4 per cent.

Dubai, home to the world’s biggest man-made islands and tallest building, will boost government spending 42 per cent in 2009 to stoke the economy amid the deepening financial crisis.

The Abu Dhabi Securities Exchange General Index decreased 1.1 per cent to 2,500.58, bringing the three-day drop to 2.2 per cent.

Abu Dhabi National Energy Co., the state-owned energy company that’s known as Taqa, slid the most in almost three weeks, recording a drop of 5.1 per cent to Dh1.11, its biggest drop since December 22.

National Bank of Kuwait SAK lost after Al Rai reported the bank may pay a lower dividend for 2008. Investment Dar Co. fell to its lowest in more than seven years after Al Qabas said the company hired Credit Suisse Group AG to help manage its liquidity problem.

The Kuwait Stock Exchange Index declined 1 per cent, while Qatar’s Doha Securities Market Index lost 1.4 per cent.

“The drop in oil prices is adding to the prevailing bearish sentiment across Gulf markets,” Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC, said in an interview on Sunday. “There are legitimate worries of a possible drop in government spending.”

Crude oil for February delivery fell 87 cents, or 2.1 per cent, to $40.83 a barrel on the New York Mercantile Exchange on Jan. 9, the lowest settlement in 2009. Oil dropped 12 per cent last week after gaining 23 per cent the week before.

Industries Qatar, the petrochemicals maker, fell 2.2 per cent to 88.5 riyals.

National Bank of Kuwait declined 3.4 per cent to 1,140 fils. The country’s largest lender may pay a cash dividend of 60 fils or less, following guidance from the Central Bank of Kuwait, Al Rai reported, without citing anyone. The bank was earlier prepared to pay 70 fils a share, the newspaper said.

Investment Dar slid 6.6 per cent to 71 fils, its lowest close since July 2001. The Kuwait-based financial services company that owns half of Aston Martin hired Credit Suisse to review its debt, prepare a repayment plan and arrange new finances, the newspaper said.

Global Investment Houses KSCC, the Kuwaiti bank that last week said it defaulted on most of its debt, dropped 7 per cent to 132 fils, bringing the slump in 2009 to 31 per cent.

Saudi Arabia’s Tadawul All Share Index added 0.1 per cent to 5,165.61. Saudi Printing & Packaging Co. surged 9.8 per cent to 16.75 riyals. The publisher of newspapers and magazines plans a 2008 dividend of 1.5 riyals a share, according to a statement posted on the Web site of the Saudi bourse on Sunday.