Gulf stocks down sharply after OPEC stands pat

Alexander Bueso Sharecast | 30 Nov, 2014 18:41 - Updated: 19:02 | | |

oil, tullow, afren

Stock markets in the Persian Gulf region ended trading on Sunday with sharp losses, as the shift in oil rents from producing nations to consumer countries further cristalised; after the price of oil reeled in reaction to OPEC's decision on Thursday to stand pat.

Hardest hit was Saudi Arabia's main stock exchange index, which dropped 4.99% to end the day at 8,625 points, near a one-year low.

Front month West Texas crude futures slid $7.35 to end the day at $66.15 on NYMEX, down by over 10%.

Developed countries, in particular, are expected to benefit, while the outlook for emerging economies is rather harder to read, as a strengthening US dollar - resulting from less recycling of 'petrodollars' into other currencies - may lead to thinner capital inflows.

In particular, there is interest in how Indian markets - given that is a large oil importer - behave.

US equities, in any case, are seen by some observers as standing to gain the most, as opposed to those from emerging market countries - if past patterns repeat themselves.

Abu Dhabi's benchmark fell 2.6% to 4,675 points and Qatar's by another 4.3%. Kuwait's index fell 3.4%, to 6,753 points, and Oman's bourse dropped 6.2%.

On Friday, Russia's rouble got whacked 3.6% lower to 50.4085 against the US currency unit, a new all-time low. The country stands to lose as much as $140bn a year as a consequence of the decline in oil prices, Finance Minister Anton Siluanov said last week.

Other oil and commodity exporting countries' currencies also fell back. Brazil's real surrendered 1.4% to trade at 2.5654 versus the 'greenback' by the end of trading. Canada's Loonie ceded 0.5% to 85.06 US cents. Norway's krone was at five-year lows.

More news

20:14 Bonds: Gilts slump on retail sales data as safe haven bid unwinds

These were the movements in the most widely-followed 10-year sovereign bond yields: US: 2.41% (+1bp)UK: 1.23% (+5bp)Germany: 0.43% (+2bp)France: 1.04% (+0bp)Spain: 1.73% (-1bp)Italy: 2.27% (+1bp)Portugal: 4.20% (+4bp)Greece: 7.39% (-1bp)Japan: 0.06% (0bp)

22:02 US House of Representatives postpones vote on healthcare reform

Leaders of the US House of Representatives put on ice plans for a vote on Thursday night on President Trump's proposal to repeal Obamacare.

19:31 Directors dealings: Abcam chief shows faith, pulls out chequebook again

Abcam's chief pulled out his wallet for a second time in just under a week to purchase shares in the company he runs.

18:10 FX round-up: Sterling rises on hearty UK retail sales as inflation, possible BoE rate rise lurk

Sterling ticked higher on most major crosses Thursday thanks to better-than-expected UK retail sales figures for February, with rising inflation and a possible Bank of England (BoE) interest rate hike lurking in the background.

18:09 Europe close: Stocks gain as political worries in France abate

European stocks were higher on Thursday as investors' concerns about US president Donald Trump’s economic plans drew attention to the relatively better valuations on offer on the Continent.

18:33 Thursday broker round-up

Tullow Oil: RBC downgrades to Sector Perform with a target price of 275p.

17:17 London close: FTSE gains on clothing retailers after improved UK shop-sales data

Equities in London rose to a positive close with the FTSE 100 enjoying a rise after UK retail sales for February came in stronger than expected and helped both clothes-related retailers and sterling higher.

17:14 Apple under pressure following tax avoidance reports in New Zealand

US tech giant Apple is facing further scrutiny surrounding its tax practices after reports that it has not paid any tax in New Zealand for the last decade.

17:03 Commodities: Gold a snip ahead with risk aversion potentially driving further gains

Gold was pricing a snip higher on Thursday afternoon with present risk aversion in the market potentially able to lift the nil-yielding precious metal higher in the short term.

17:01 RBS to shed 158 branches along with 400 jobs as digital banking rises

Royal Bank of Scotland Group and Natwest will see 158 branches close and shed 400 jobs as the bank blames a “dramatic shift” in banking practices.