Gulf stocks recover some losses after sell-off over oil prices
DUBAI - Stock markets in the Gulf on Tuesday recovered some of the heavy losses suffered this week due to a panic sell-off sparked by falling oil prices.
Saudi Arabia's Tadawul All-Shares Index rebounded by 7.38 percent to close at 7,543.05 points after shedding 5.88 percent on Monday and 6.86 percent on Sunday.
Petrochemicals shares led the comeback, surging 8.68 percent by the end of trading. The sector had shed 7.94 percent and 7.26 percent on Sunday and Monday respectively.
Dubai's DFM Index rose 4.61 percent to end at 3,558.37 points after shedding 6.96 percent on Sunday. Market leader Emaar Properties gained 3.43 percent after losing 8.31 percent on Sunday.
Arabtec Construction group, whose stocks dropped a 9.6 percent on Sunday, nearing its 10-percent daily limit, recovered by 9.94 percent on Tuesday.
"The reason behind the recovery is that the drops were exaggerated, accompanied by panic triggered by sales forced through margin calls," said financial analyst Wadah Taha.
This prompted panic selling among other investors, he said, adding that the sharp falls had "created golden opportunities" for bargain-hunters.
The Abu Dhabi Securities Exchange, which plunged five percent on Sunday and half a percentage point on Monday, rose 1.63 percent on Tuesday.
Qatar Exchange, the second largest in the Gulf, also rebounded 3.15 percent after two days of losses.
The falls across the oil-rich region came after crude prices slid to new lows Friday and world stock markets were hammered with heavy losses over China's economic woes.
European and US markets rebounded on Tuesday as investors sought bargains after China cut interest rates.
Oil prices also recovered slightly after tumbling Monday to 6.5-year lows on heightened fears over a potential Chinese economic slowdown.