Saudi market closes up in tough day of trading

Markets across the region are hit hard as the Government's decision to guarantee bank deposits failed to avert further falls.

Markets across the region were hit hard today as the Government's decision to guarantee bank deposits failed to avert further falls. The Government's move did lead a surge in gains across several banks, but Saudi's main index was alone in posting a rise, up 0.34 per cent to 5,814. Saudi Basic Industries led the lift, up 8.6 per cent, helping the kingdom's index close higher after the central bank cut its key benchmark repo lending rate by 50 basis points. The Dubai Financial Market General Index closed at its lowest level since March 2005, ending 5.41 per cent down at 3,025 points. Investors frantically sold on Emaar Properties, which ended 10 per cent lower, dragging down the market. Deyaar Developments also plunged 8.3 per cent, while Arabtec ended 9.9 per cent lower.

The Abu Dhabi Securities Exchange index ended 2.3 per cent lower at 3,133, paring earlier losses as attractive valuations tempted investors back to the emirate's property sector. Aldar Properties fell just 0.7 per cent, while Sorouh Real Estate gained 0.21 per cent. Qatar's main index ended 7.18 per cent down at 7,029, led lower by selling in banks and Industries Qatar, which dropped seven per cent. The QSI has lost 27 per cent since the beginning of the year. In Kuwait, the main KWSE Index followed suit, with 0.4 per cent knocked off its value at close, posting 11,858 points.

Bahrain's BAX ended down 0.83 per cent at 2,311, while Oman's MSI was less resistant to the financial turmoil and dropped 5.68 per cent lower at 6,770. Egypt's benchmark CASE30 recovered well from an early fall of nine per cent in early trading but still closed 3.15 per cent down at 5,491. [e-mail]