Qatar has become the 5th stock market in the Gulf Cooperation Council (GCC) entered “bear market” in the context of oil prices plunged a record and bottom lowest since 7/2009.
End of session last week, the index QE Index fell 5.9% to 11,114.43 points. Total index fell 23% compared with record highs were set in September.
Meanwhile index DFM General Index Dubai fell 7.6%, the most since 10/2008. The index has fallen 34% in the fourth quarter and lost market position gained the world’s best in 2014.
In the past 3 weeks, basic indicators of the stock market of Saudi Arabia, Kuwait and Oman have fallen into a bear market. The GCC countries account for about 1/3 of the oil reserves in the world.
The price of North Sea crude oil fell to $ 61.85 / barrel last week after the Organization of Petroleum Exporting Countries ( OPEC ) lowered forecasts of demand in 2015 to its lowest level in 12 years. Dow Joneslast week the worst since 2011, while European stocks fell most sharply over 3 years. Energy Minister of the UAE continues shocking to say that OPEC will not cut production even when oil prices fell to 40 USD / barrel.
By Tariq Qaqish, experts from Al Mal Capital Fund, oil is an important source of government budget in this area. The price of oil fell mean spending will be reduced, leading to reduced growth. Governments need oil prices at $ 80 / barrel to balance the budget in 2014, according to calculations by the IMF.
Production activities of oil and natural gas contributed more than half of the GDP of Qatar , according to the EIA. In seven years, the host of the 2022 World Cup have spent $ 210 billion for roads, stadiums, railway system and a new city before the tournament started.
Gusts selling derived from oil prices even affect the Egyptian stock market which is an importer of oil. EGX 30 Index of the country has decreased by 5.2%, the most in more than two years.
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