Dubai, Saudi markets make gains after sell-offs

AP News
Posted: Aug 25, 2015 12:28 PM

DUBAI, United Arab Emirates (AP) — Saudi Arabia's stock market closed more than 7 percent higher and Dubai's main index inched up more than 4 percent on Tuesday after several days of sell-offs on the back of a further slide in oil prices and investor concerns over China's economy.

The Saudi Tadawul index, the region's largest, had dropped 12.3 percent over two consecutive trading sessions, before gaining 7.4 percent. Dubai's index rose 4.6 percent after sliding almost 8.5 percent since opening day of trading for the week on Sunday.

Sebastien Henin, head of Asset Management at United Arab Emirates-based firm The National Investor, said some investors felt it was a good time to get back into the Gulf market after the drop in prices.

"I think you know investors have realized that maybe they had overreacted in the past sessions following the surprise devaluation of the Chinese currency," Henin said, referring to markets in the Middle East.

Concerns about a slowdown in China shook markets around the world and caused the biggest drop in the U.S. stock market in nearly four years on Friday.

Brent crude, a benchmark for international oil used by many U.S. refineries, slipped to $42.69 Monday, its lowest level since March 2009.

Other Mideast indexes, which trade from Sunday to Thursday, also tumbled at the start of the week, with Egypt's main index, the EGX30, dropping 5.4 percent Sunday. Egypt closed Tuesday gaining 2.75 percent.