On Monday, there was a fall in the Gulf Arab indexes to 17-month lows in frantic trading. This happened since the emerging markets were abandoned by the investors for fear of fallout from the latest disorder in the U.S. financial sector. There was a fall of 8% in the index of Dubai, which is actually the lowest level since April, 2007 during the session.
The investors are double minded since a case for bankruptcy was filed by the U.S. investment bank Lehman Bros, and due to this, the investors bailed out of banks and real estate companies with the aim to avoid any risk of a financial turmoil.
Reza Hadizad, executive director of Arqaam Capital in Dubai, reported, “Few Gulf Arab companies were spared as investors across the globe dumped stocks, with India's 30-share BSE index down over 4 percent and Taiwan's TAIEX down to levels not seen since 2005. How far this market malaise is going to affect the region is anybody's guess.
Even before the U.S. financial sector had to face the music of its latest happening, Gulf Arab stock markets were already tattered. This happened since the investors sold the stocks with the fear of Iran on their minds. Furthermore, cases of corruption which recently had come forward and had led to arrests of some high profile people working at banks and property firms had added to their fears.
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