Regional stock markets plunge over Syria worries

27 August 2013

Regional stock exchanges sharply decline for first time in months

Regional stock markets plunged on 27 August over fears of Western military intervention in Syria.

Dubai’s benchmark index fell 7.01 per cent, Abu Dhabi dropped 2.83 per cent, Qatar decreased 1.28 per cent and Saudi Arabia dropped 4.12 per cent.

The sell-off followed statements by the governments of the UK, the US and France signalling they could soon decide to intervene militarily in Syria, days after chemical weapons allegedly killed hundreds of residents in eastern Damascus.

It is the first time in months the regional stock exchanges have sharply declined. Over the past three months, optimistic investors brought most exchanges to overbought levels, confident that the economic recovery in the region was taking off. However, with trading dominated by retail investors, exchanges remain sensitive to impulsive trades and volatility.

 

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications