* Qatar falls 4 pct ahead of FTSE emerging market index
* Saudi falls near technical support level as investors
weary of further austerity
* Ninety percent of shares decline
* Dubai holds onto small gains in light of improved global
By Celine Aswad
DUBAI, Sept 19 Qatar's main equity index slumped
4.0 percent on Monday ahead of the additions of some companies
in FTSE's secondary emerging market index, while Saudi Arabia
dropped as investors grew weary of further austerity expected to
come into effect next month.
Doha suffered from its largest single day drop since January
in the heaviest turnover so far this year.
Shares in companies set to be included in index compiler
FTSE's secondary emerging market index on Sept. 20 were the top
losers, with mobile phone operator Ooredoo and Islamic
lender Masraf Al Rayan each falling 5.1 percent.
Fund managers said the correction was expected as the rally
in anticipation of inclusion in the FTSE index had taken some
company valuations above fair value.
Saudi Arabia's stock index dropped 2.1 percent to
5,936 points, only 25 points shy of the technical support on the
August low. Nine-tenth of the traded shares declined.
Although volume was double that of Sunday's, the general
lack of liquidity in the market is one of the greatest concerns,
said Santhosh Balakrishnan, equity analyst at Riyad Capital.
"There has been less participation in the market
comparatively, and this is the first year that there is no grand
re-opening of the markets after the Eid holidays."
Saudi Kayan Petrochemical dropped 3.1 percent and
the largest Islamic bank Al Rajhi Bank dropped 3.1
Uncertainty over further austerity hit sentiment, according
to local media, the government is expected to hike fees on
services including driving licenses, traffic violations, port
fees and several other municipal services on Oct. 2.
Last month the cabinet, seeking to boost state revenues in
an era of low oil prices, approved proposals to raise a range of
government fees including visa charges and fines for some
The insurance sub-index, usually favoured by local
retail traders, fell 4.1 percent.
"In a time of uncertainty no one takes fresh positions and
they tend to stay away until clarity comes back,"
DUBAI STEADIES, EGYPT CLIMBS
Global stocks drew support from expectations that the U.S.
Federal Reserve would skip a chance to raise rates this week and
this helped support Dubai's index, which attracts
The index held onto small gains and added 0.04 percent, with
gainers outnumbering losers 13 to 10. The largest listed
developer Emaar Properties added 0.4 percent.
But some shares which have been outperforming over the last
two sessions pulled back, with GFH Financial Group
dropping 2.9 percent and Shuaa Capital declining 0.6
But in Abu Dhabi, the equity index dipped 0.1 percent
with main drag from large-cap lenders. Union National Bank
fell 3.9 percent and Abu Dhabi Commercial Bank
lost 0.6 percent.
In Egypt, the main index rose 0.7 percent as
two-thirds of the most valuable stocks advanced.
Shares favoured by foreign funds were some of the top
performers,with Global Telecom Holding jumping 4.0
* The index dropped 2.1 percent to 5,936 points.
* The index slumped 4.0 percent to 10,153 points.
* The index rose 0.04 percent to 3,485 points.
* The index lost 0.1 percent to 4,482 points.
* The index added 0.7 percent to 7,974 points.
* The index rose 0.6 percent to 1,135 points.
* The index declined 0.3 percent to 5,763 points.
(Editing by Louise Heavens)