Real estate hurts Dubai bourse, all major Gulf markets slide

Dubai

REAL estate shares led Dubai's stock market lower on Thursday, while all major Middle Eastern bourses fell with other global equity markets after the US Federal Reserve hiked rates and oil prices slid.

In Dubai, the index was down 1.1 per cent. It is down more than 25 per cent so far this year, making it the worst-performing market in the Middle East. Developer Union Properties lost 3.7 per cent and DAMAC Properties declined 4.1 per cent.

Dubai's weak real estate market has been a big drag for property shares this year.

Annual inflation in the United Arab Emirates dropped to 1.3 per cent in November from 1.6 per cent in October as housing and utility costs fell 5.3 per cent from a year ago.

Dubai's real estate downturn is forcing construction and engineering firms to cut jobs and halt expansion plans, raising fresh risks for the wider economy.

Saudi Arabia's index fell for a third straight session, slipping 0.6 per cent, a day after the government released its 2019 budget.

Heavyweight Saudi Basic Industries decreased 1 per cent and Samba Financial Group dipped 1.5 per cent.

Saudi Kayan Petrochemical was down 0.6 per cent. The firm said it would evaluate an alkoxylates joint venture with Switzerland-based Clariant.

Oil prices erased most of the previous session's gains on Thursday, resuming a slide seen earlier in the week amid worries about oversupply and the outlook for the global economy.

Qatar's index dropped 0.8 per cent with Industries Qatar shedding 1.2 per cent and Middle East's largest lender Qatar National Bank losing 1 percent.

Qatar Fuel declined 1 per cent. The company said it opened a new petrol station and was targeting opening 130 fuel stations by the end of 2020.

The Abu Dhabi index lost 0.4 per cent as Aldar Properties lost 1.9 per cent and Dana Gas shed 3.4 per cent. REUTERS