Stocks in the Gulf continued downward momentum, extending losses incurred in the last three days as anxiety over the impact of the Greek financial crisis continues to affect the bearish mood. Rising concerns that Greece's debt crisis could spill into other euro zone countries and derail the global recovery have seen oil futures shed almost 40 percent of gains since February. “The volatility is extreme, I haven't seen anything like this in a long time,” one trader said. Saudi Arabia's benchmark Tadawul All-Share Index (TASI) ended lower for the fourth day, dropping by 0.99 percent to 6,817.86 points. SABIC, retreated 1.9 percent, the most since April 20 to SR104.75. All sectoral indices were in the red on Wednesday, with petrochemical industries index registering the biggest loss at 1.38 percent, followed by insurance at 1.16 percent. Out of 138 listed companies trade on Wednesday, only 14 managed to advance while 114 retreated. Elsewhere in the region, the Dubai Financial Market General Index General Index dropped 0.4 percent to 1,735.72 on volumes of 121.4 million. The Abu Dhabi Securities Market General Index fell 0.8 percent to 2,778.85 on volumes of 66.3 million. Qatar shares retreated the most in three months, leading declines in the Gulf, as oil fell and amid concern that Europe's debt crisis will spread beyond Greece and curtail a global economic recovery. Qatar's DSM 20 Index fell 1.3 percent to 7,415.72, and Oman's MSM 30 Index lost 0.4 percent to 6,830.09. Kuwait's bourse dropped 1 percent to 7,178.60. Bahrain's main measure lost 0.5 percent to 1564.10. In North Africa, Egypt's gauge fell 2.3 percent. Egypt's Orascom Telecom (OT) fell 7.3 percent lower as investors, believing a sale of assets is unlikely to proceed quickly, booked profits and exited leveraged positions, traders said. “Declines on our markets are less severe than those on global markets, so Gulf stocks could increasingly emerge as a defensive play versus the rest of the world,” said Haissam Arabi, chief executive at Gulfmena Alternative Investments. “Middle East and North Africa markets are trading in sympathy with Europe,” said Rabih Sultani, a fund manager at Duet Mena Ltd. in Dubai, a unit of Duet Group, which oversees $2.1 billion. “There's a fear the Greek crisis will spread to Portugal, Spain and Italy.” The DFM General Index slid a second day this week, dropping 0.4 percent to 1,735.72. World oil prices slumped again on Wednesday after the euro hit a fresh one-year low against the dollar amid worries over Greece's debt crisis. The market also took a hit following news of a larger-than-expected rise in US oil inventories, which appeared to indicate weakening demand in the world's biggest energy consuming nation. New York's main contract, light sweet crude for June, dropped $2.77 to $79.97. It has now lost $6.22 in two days. Brent North Sea crude for June delivery tumbled $3.06 to $82.61 a barrel in late New York trade. “It's all about the slump in the euro today. All commodities are getting absolutely hammered,” one trader added.
