Dec 5 (Reuters) - Saudi Arabia’s stock market slid on Wednesday, as falling oil prices weighed on its banks and petrochemical stocks, while Dubai fell to its lowest in nearly three years, hurt by a drop in property stocks.
Oil prices fell 2 percent overnight, pulled down by swelling U.S. inventories and a plunge in global stock markets as China’s government warned of increasing economic headwinds.
The Saudi Arabian index lost 0.7 percent, with Al Rajhi Bank falling 0.5 percent and top petrochemical producer Saudi Basic Industries Corporation (SABIC) shedding 0.7 percent.
SABIC said on Tuesday it had agreed to acquire Japan Saudi Arabia Methanol Company’s 50 percent stake in Arrazi
Al Sagr Cooperative Insurance Co fell 0.5 percent after announcing the appointment of Talal Abdulaziz Fida as its acting chief executive.
In Dubai, the index slipped 1.4 percent to its lowest since Jan. 26, 2016, pressured by real estate shares.
Dubai property prices sank 7.4 percent from a year earlier in the third quarter of 2018, with the drop accelerating from a 5.8 percent fall in the second quarter, the United Arab Emirates central bank said in a report on Tuesday.
Emaar Properties shed 3.3 percent and Union Properties dropped 5.5 percent.
The Abu Dhabi index lost 1.5 percent after registering its biggest gain in two years on Tuesday. The emirate’s largest lender, First Abu Dhabi Bank, declined 2.4 percent after surging in the last session, its first trading day after its weighting in MSCI’s emerging markets index doubled.
Aldar Properties dropped 2.5 percent, while Eshraq Properties lost 4.2 percent.
Abu Dhabi residential real estate prices dropped 6.1 percent year-on-year in the third quarter after a 6.9 percent slide in the second quarter, the central bank report added.
Qatar’s index edged down 0.3 percent with Industries Qatar shedding 0.8 percent. Qatar National Bank fell 1 percent after SICO downgraded the stock to ‘sell’ from ‘buy’, at a target price of 180 riyals ($49.45).
$1 = 3.6400 Qatar riyals Reporting by Shakeel Ahmad and Abinaya Vijayaraghavan in Bengaluru; Editing by Mark Potter