October 2, 2019 / 1:07 PM / 15 days ago

MIDEAST STOCKS-Dubai leads losses as Gulf tracks decline in global markets

    * Entire real estate sector slides in Dubai
    * Emaar hits its lowest in 3 months
    * All Saudi Arabian banks decline
    * 26 of 30 stocks drop in Egypt

    By Ateeq Shariff and Shamsuddin Mohd
    Oct 2 (Reuters) - Middle East stocks fell on Wednesday,
mirroring a decline in global shares, with Dubai particularly
hard hit as property companies declined sharply.
    Global equity markets dropped after data showed the U.S.
manufacturing sector contracted in September to its weakest
level in more than a decade as business conditions deteriorated
further amid trade tensions between China and the United States.

    Manufacturing activity in the euro zone also shrank at its
steepest rate in almost seven years last month, according to a
survey on Tuesday that suggested there would not be a turnaround
any time soon.
    In Dubai, the index closed 1.3% lower, extending
losses for a second session with all its real estate stocks
tumbling. Blue-chip developer Emaar Properties plunged
4.8% to its lowest level since June 27, while its unit Emaar
Malls was down 1.6%.
    A Reuters poll in September showed that Dubai property
prices have slumped 25%-35% since mid-2014 and that analysts
expect a further downtrend this year and next amid a slowing
economy and an oversupply of housing units.
    Saudi Arabia's share index dropped 0.9% with all
banks in the index slipping, including Al Rajhi Bank
which fell 1.1%. Saudi Telecom dropped 2.4%.
    Saudi Arabia's economy slowed sharply in the second quarter
amid oil output cuts by the world's largest crude exporter,
government data showed on Monday, raising fears of an economic
contraction this year.
    On Monday, Fitch downgraded Saudi Arabia's credit rating to
A from A+, citing rising geopolitical and military tensions in
the Gulf following an attack on Saudi oil facilities and a
deterioration of the kingdom's fiscal position.
    The Saudi finance ministry said in a statement that the
decision by Fitch was "swift" and did not reflect Riyadh's
actions to maintain global oil supplies. It asked the rating
agency to reconsider its downgrade.
    Egypt' blue-chip index slid 0.8% with 26 of the 30
stocks declining. Eastern Company shed 2.7%, while El
Sewedy Electric tumbled 4.4%.
    Egyptians were net sellers of stocks, bourse data showed.
    In Qatar, the index retreated 0.7% with market
heavyweight Industries Qatar losing 1.4% and Mesaieed
petrochemical dropping 2.4%.
    Abu Dhabi's index lost 0.5%, extending losses for a
third straight day. Emirates Telecommunications Group
 declined 1.3% and Abu Dhabi Commercial Bank
 was down 1.8%.
    
 SAUDI ARABIA  The index         declined 0.9% to 7,984 points
 ABU DHABI     The index        lost 0.5% to 5,031 points
 DUBAI         The index          dropped 1.3% to 2,744 points
 QATAR         The index        slid 0.7% to 10,360 points
 EGYPT         The index          down 0.8% to 14,381 points
 BAHRAIN       The index        fell 0.1% to 1,514 points
 OMAN          The index        slipped 0.3% to 4,025 points
 KUWAIT        The index        was down 0.7% at 6,120 points
 
 (Reporting by Ateeq Shariff and Shamsuddin Mohd in Bengaluru;
Editing by Susan Fenton)
  
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