Region pulled down by Wall Street slide

Dubai : Middle Eastern stock markets sank yesterday in response to Friday’s tumble on Wall Street, after U.S. data showed the strongest annual wage growth since 2009 and raised the risk of more interest rate hikes than expected this year.

The Saudi index dropped 0.6 per cent with falling shares outnumbering gainers by 105 to 74. Saudi Arabian Mining Co (Ma‘aden), which had fallen 4.9pc on Thursday after reporting a surprise fourth-quarter loss, lost a further 1.7pc.

Mediterranean & Gulf Cooperative Insurance and Reinsurance plunged 9.9pc after the Capital Market Authority said it might suspend or cancel trade in the stock, following the central bank’s decision to prohibit the firm from issuing or renewing policies pending a capital increase to address a low solvency
margin.

Dubai’s index slid 0.8pc in its lowest trading volume this year as Emaar Properties, which like other real estate firms could face tougher business conditions if higher U.S. interest rates are passed on through the Gulf’s currency pegs, fell 1.2pc.

Qatar’s index tumbled 2.7pc, its biggest drop since last June, with real estate firms particularly weak; United Development lost 3.4pc and Barwa Real Estate slipped 3.2pc.

In Egypt, the blue-chip index fell 1.4pc, but Global Telecom bucked the trend, rising 1.2pc. Alexandria Medical Services sank 7.0pc after reporting a 19pc fall in annual net profit.