Gulf stocks slide on Saudi-Iran duel

Stock markets in energy-rich Gulf states take a dramatic hit following rising tensions between Saudi Arabia and Iran, a royal purge in Saudi Arabia and other regional disputes.

The decline was led by shares in Kuwait and Qatar, where the stock index dropped to its lowest level since March 2011 as the country reels from a five-month-old boycott by neighbouring nations.

Six Gulf bourses ended lower and the Saudi market was down 2.9 percent in afternoon trade at levels last seen more than five months ago.

The Boursa Kuwait index fell 4.4 percent at one point but recovered slightly to end the day down 2.8 percent. Kuwait is also facing an internal political dispute that forced the cabinet to resign last month.

The Qatar Exchange index dropped 1.1 percent to close below the 8,000-point mark for the first time since March 2011.

The Dubai Financial Market index declined 1.8 percent to close the day below the 3,500-point level for the first time in four months.

The Abu Dhabi market dropped 0.35 percent, Bahrain’s exchange slipped 1.0 percent and Muscat inched down 0.01 percent.

Saudi shares were also shaken by the arrest of several leading business figures including billionaire Prince Al-Waleed bin Talal in what the authorities said was an anti-corruption sweep.

— AFP