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Posted On: 8 August 2011 08:03 am
Updated On: 12 November 2020 02:11 pm

Gulf stock facing recession fears

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Gulf stocks tumbled on Sunday, and major stock exchanges have fallen because of fears of another wave of the explosion of a global recession following the ratings downgrade of the U.S. and European debt problems. The Standard & Poor's lowered credit rating long-term U.S. one notch to AA + in an unprecedented strike amid fears of a U.S. budget deficit and growing debt burdens. The agency said the outlook looks «negative», referring to a possible new cut within 12 to 18 months. Worried investors paid equity markets in the largest oil-exporting region in the world to its lowest level in several months and a day after the Saudi index lowest in five months. Said Mohammed Yasin, chief investment officer at M-Cap of investments in Abu Dhabi, the decline in the Saudi index «is what really disturbed the market in view of the landing force in a short period». stability of Saudi Arabia's index helped yesterday to reduce stock losses in other markets. The Saudi market is open two hours after the start of trading in the first Gulf markets. But the markets had been hit in early trade and the Dubai index suffered its biggest losses since Jan. 30 and Emaar Properties fell 5.26 percent. In Oman, the index fell to its lowest level in two years and the country index fell to its lowest level since March 17 when the regional political turmoil pushed the index lower. And the opening of the Saudi index up 0.2 percent. He said a fund manager in Saudi Arabia, who asked not to be named «the day (yesterday) to stop the bleeding but things are still vague. There are a lot of questions about the impact of reducing the rating on the U.S. development plan Arabia ». The «foreign assets of Saudi Arabia at record levels, mostly in U.S. Treasury bills. We are the most affected category in the region to reduce the U.S. We do not know what would be the case proceeds ». It is expected to decline the U.S. dollar and rising U.S. Treasury revenue tools for the resumption of trading in Asian markets on Monday, but it is likely to limit the worsening debt crisis of the European operations of any sale resulting from the reduction of the U.S. classification. Said Jarmo Kolin, chief economist at National Commercial Bank in Riyadh «downgrade bad news and will affect people's frustration and leads to concern the market». The «likely to induce people to invest. With what is happening in the United States and Europe is under the house of cards that was built during the era of low-cost credit to vibration. This raises the concern of the people ». The Dubai index ended down 3.7 percent at 1484.3 points, while Abu Dhabi's index declined to its lowest level in six months, before recovering slightly to close down 2.53 percent at 2603 points. Shares of Aldar Properties 6.25 percent and First Gulf Bank 5.88 percent. The index closed the country down 2.5 percent at 8277 points, after opening down 5.2 percent, its lowest level since mid-March. In Kuwait, the only Gulf country without a dollar peg main index closed down 1.6 percent at 5968.3 points. Said Yassin Cap M «the U.S. market will remain attractive for liquidity. It is a market of more sophisticated and dependent on technology and always will remain an attractive .. Is not the case in our markets and the situation will be difficult in the future. Alwatan Newspaper