Stock News: Gulf Markets Mixed, Oman Steadies

Stock markets in the Gulf were mixed in early trade on Monday as crude oil prices fell further, keeping investors guessing about when and where they would find a floor.

Oil prices dropped more than a dollar on Monday to approach early December’s five-year lows after Morgan Stanley cut its price forecast for Brent crude, saying oversupply would likely peak next year after OPEC opted not to cut output.

Dubai’s stock index edged down 0.5 per cent as most stocks declined in low-volume trading and heavyweight Emaar Properties fell 1.1 per cent.

Qatar’s benchmark slipped 0.1 per cent as petrochemicals-to-metals congolomerate Industries Qatar fell 0.5 per cent and drilling rig provider Gulf International Services lost 0.4 per cent.

Oman’s bourse edged up 0.3 per cent after tumbling 4.2 per cent in the previous session. Banking stocks, which had dropped when rating agency Standard & Poor’s cut its outlook on Oman’s rating to negative, rebounded with HSBC Oman and Bank Sohar up 5.3 and 4.5 per cent respectively.

However, Raysut Cement, which had fallen by its daily 10 per cent limit on Sunday, extended losses and dropped 4.6 per cent. The firm said on Sunday the price it paid for gas supplies would double next year, as the government responded to the oil price drop by cutting subsidies.

Abu Dhabi’s index climbed 0.3 per cent on the back of National Bank of Abu Dhabi, which gained 2.0 per cent. Kuwait’s benchmark edged down 0.5 per cent.