Qatar Shares Lead Middle East Drop as Oil Falls on Economic Growth Concern

Qatar shares fell to the lowest in almost three weeks, leading a decline in Middle East markets, after oil prices had their biggest weekly drop in six on concern the global economic recovery is faltering.

Industries Qatar, the second-biggest petrochemicals maker in the region, decreased for a third day. Qatar Islamic Bank SAQ, the Gulf emirate’s biggest Shariah-compliant lender, lost 1.9 percent. Qatar’s QE Index slid 0.7 percent to 7,012.94, the lowest intraday level since July 26, at 11:39 a.m. in Doha. In Dubai, Union Properties PJSC declined after reporting a loss. The Bloomberg GCC 200 Index of Gulf stocks slipped 0.2 percent.

“Reduced institutional participation makes us more immune, but not fully immune” to global market movements, said Yazan Abdeen, fund manager at ING Investment Management (Dubai) Ltd., which oversees $50 million. “It is Ramadan and culturally, trading declines due to fasting. There is no fundamental catalyst to drive the markets upward.”

U.S. stocks fell and the Standard & Poor’s 500 Index posted the biggest loss in five weeks on concern that the Federal Reserve’s stimulus plan and an increase in jobless claims means the economic recovery is in jeopardy. The Standard and Poor’s 500 Index retreated 3.8 percent and Europe’s Stoxx 600 decreased 1.2 percent. Crude oil for September delivery tumbled 6.6 percent last week to close at $75.39 a barrel on Aug. 13, the lowest price since July 12. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil.

The Islamic holy month of Ramadan, when Muslims fast from sunrise to sunset and business activity slows, began last week. About 1.6 million shares have traded in Doha today, compared with a 6-month daily average of 8.2 million.

Industries Qatar retreated 1.8 percent, the most since Aug. 4., to 100 riyals. Qatar Islamic slipped the most since July 15 to 73 riyals.

Union Properties

Dubai-based developer Union Properties PJSC decreased 2.2 percent, the most since Aug. 11, to 36.1 fils after the second- quarter loss widened to 349 million dirhams ($95 million) from 228 million dirhams a year earlier. Dubai’s benchmark index lost 0.1 percent.

Kuwait’s gauge and Oman’s benchmark stock index declined 0.2 percent. Abu Dhabi’s ADX General Index gained 0.3 percent and Saudi Arabia’s Tadawul All Share Index rose 0.1 percent. Egypt’s benchmark index and Bahrain’s gauge were little changed.

The TA-25 Index in Tel Aviv advanced 0.3 percent, the most since Aug. 9. Israel’s government bonds fell, with the benchmark Mimshal Shiklit due January 2020 declining 0.1 shekel to 107.54, The yield on the 5 percent notes was unchanged at 4.36 percent.