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Huge sell-off hits Arab exchanges Arab shares see partial recovery
(about 10 hours later)
Dubai's stock market has dropped by more than 10%, adding to substantial losses over recent days amid fears of a faltering property market. Dubai's stock market dropped by more than 8% on a turbulent day's trading, adding to substantial losses caused by fears of a faltering property market.
Two of the biggest fallers were the Gulf emirate's property giant Emaar and construction firm Arabtec.Two of the biggest fallers were the Gulf emirate's property giant Emaar and construction firm Arabtec.
Shares also fell heavily in several Middle East exchanges including Abu Dhabi, Egypt, Qatar and Saudi Arabia. Billions of dollars were wiped off other Mid-East exchanges including Abu Dhabi, Egypt, Qatar and Saudi Arabia.
The Saudi slide came despite assurances from officials that the country was not exposed to the global financial crisis. Panic gripped trading floors in the morning, although some staged partial recoveries before the close of trading.
The Dubai Financial Market sank to 3,043 by mid-morning with prices of all 27 quoted shares falling. The market fell by 5.1% on Tuesday. The Dubai Financial Market sank to 3012 at midday after starting the day at 3184, although the index ended at 3085.
Foreign investors are reportedly selling interests in Dubai amid fears of weakness in the emirate's construction bonanza and a greater exposure to global markets than its Gulf neighbours.Foreign investors are reportedly selling interests in Dubai amid fears of weakness in the emirate's construction bonanza and a greater exposure to global markets than its Gulf neighbours.
Unwarranted fallsUnwarranted falls
Saudi Arabia's stock exchange - the Middle East's largest - fell by more than 7.5%, trading below the 6,000-point mark for the first time since 2004. Saudi Arabia's stock exchange - the Middle East's largest - also staged a comeback after falling by more than 7.5% at one stage, trading below the 6000-point mark for the first time since 2004.
High tension and panic are gripping the Gulf stock markets Kuwaiti economist Hajjaj Bukhdur Saudi central bank deputy governor Mohammed al-Jasser tried to reassure investors, saying the country had no liquidity problems and was safe from the financial crisis engulfing the US and Europe. High tension and panic are gripping the Gulf stock markets Kuwaiti economist Hajjaj Bukhdur The Tadawul All-Shares Index ended trading just 1.5% down at 6160, hours after a central bank official reassured investors the country did not face the liquidity problems that have caused such chaos in international markets.
He said recent sharp falls on the Saudi stock market, which have hit banks, were unwarranted and bank deposits were safe. Deputy Director Mohammed al-Jasser said recent sharp stock market falls, which have hit Saudi banks hard, were unwarranted.
"The situation is stable and does not require any emergency measures as if there were a problem with the banks meeting their commitments," Mr Jasser told al-Arabiya TV."The situation is stable and does not require any emergency measures as if there were a problem with the banks meeting their commitments," Mr Jasser told al-Arabiya TV.
The latest declines mean Saudi bank shares have lost more than half their value since the beginning of the year.The latest declines mean Saudi bank shares have lost more than half their value since the beginning of the year.
Record fallsRecord falls
Egypt's Case-30 index sank another 12.5% percent within minutes of opening, after a fall of 16.47% on Tuesday. Egypt's stock market also clawed back more than half of its losses earlier in the day to close down 7.1%. The benchmark Case-30 index lost 16.47% on Tuesday.
"We're swamped here," Ahmed Hefnawi, an analyst with investment bank EFG Hermes told AFP news agency. "We're swamped here," Ahmed Hefnawi, an analyst with investment bank EFG Hermes, told AFP news agency during frantic selling in the morning.
Kuwaiti economist Hajjaj Bukhdur said: "High tension and panic are gripping the Gulf stock markets".Kuwaiti economist Hajjaj Bukhdur said: "High tension and panic are gripping the Gulf stock markets".
"Some major portfolios and investment funds are pressurising governments to intervene by injecting liquidity," he said."Some major portfolios and investment funds are pressurising governments to intervene by injecting liquidity," he said.
Kuwait's Central Bank cut discount interest rates by 1.25% percentage points to 4.5%, hoping to address growing concerns about financial liquidity. Earlier in the day Kuwait's Central Bank cut discount interest rates by 1.25 percentage points to 4.5%, hoping to address growing concerns about financial liquidity.
But its stock exchange, the Arab world's second biggest, fell by 2.8% in the morning's trading. In morning trading, the stock market - which is the Arab world's second largest - fell by 2.8%, but it closed down just 1.4%.
Qatar's exchange meanwhile, dropped 8.3%, the biggest single-day market fall in several years in the gas-rich state. There was no recovery at Qatar's exchange, however, which ended the day 8.77% down, the biggest single-day market fall in several years in the gas-rich state.
The Tel Aviv stock exchange was closed for a Jewish holiday, having risen on Tuesday thanks to a 0.5-point cut in the base interest rate to 3.75%. The Tel Aviv stock exchange was closed for a Jewish holiday, having risen on Tuesday thanks to a 0.5-point cut in the base interest rate, to 3.75%.