Gulf markets down after US shares plunge

DUBAI: Gulf stocks dipped in early trade on Thursday after US markets plunged the previous day amid European debt troubles and as worries of a new US recession kept investors nervous.

The Dubai Financial Market index dropped more than one percent shortly after opening, but reduced losses slightly by 11:25 am (0725 GMT) to 0.97 percent at 1,446.81 points.

The leading shares of Emaar Properties slipped 1.43 percent, while construction group Arabtec's shares dropped 0.75 percent.

DFM had closed 1.15 percent up on Wednesday, after profit-taking sales reduced its pace of recovery after being mostly in the red since the trading week began.

In neighbouring Abu Dhabi, the general index slipped into the red by 0.48 percent, standing at 2,589.99 points.

The Muscat Securities Market in Oman, which was the only Gulf market to drop on Wednesday, also opened in the red on Thursday, trading 0.63 percent down 5,845.54 points.

It later reduced losses to 0.32 percent.

Qatar Exchange, the second largest Arab bourse after the Saudi market which remains closed on Thursday, also opened down 0.44 percent at 8,091.78 percent.

Asian stocks traded low on Thursday after stock markets in the US and Europe plunged over fears of a potential global economic recession. But European markets reversed their losses at opening on Thursday.

Copyright AFP (Agence France-Presse), 2011