Regional equities felt the heat from Europe as Italy's borrowing costs continued to rise despite moves by policymakers to try and curb the euro-zone's debt crisis.
Gulf bourses track global dip
Gulf markets mostly declined yesterday, tracking global declines, as Italy's borrowing costs continued to rise despite moves by European policymakers to try to curb the region's growing debt crisis.
Aldar Properties, Abu Dhabi's biggest developer, fell 0.9 per cent to Dh1.05 on the Abu Dhabi Securities Exchange General Index. Sorouh Real Estate, the capital's second biggest developer, declined 1 per cent to 99 fils. The index slipped 0.2 per cent to 2,480.07 points.
The benchmark is down almost 10 per cent so far this year.
Mario Monti, Italy's likely next prime minister, met on Monday with the country's biggest political parties to try to put together a cabinet that can steer the country through its debt crisis.
Yields on 10-year bonds, however, rose to 7.02 per cent, surpassing the 7 per cent threshold that raised fears among investors last week that the country was on course to default.
"We are not getting the same kind of swings in Europe," said Fadi Al Said, a senior fund manager at ING Investment Management.
"However, there are no more catalysts - now that third-quarter results have been released - to lift markets."
On the Dubai Financial Market General Index, Union Propertiesfell 0.9 per cent to 30 fils after the developer said losses in the third quarter had widened to Dh1.1 billion from Dh452 million a year earlier.
The index was unchanged 1,388.23.
Oman's MSM 30 Indexdeclined 0.4 per cent to 5,536.17, Qatar's QE Index was down 0.2 per cent 8,743, Bahrain's index was unchanged at 1,150.64, and Kuwait's measure fell 0.1 per cent to 5,879.70. The Saudi Tadawul All-Share Index was down 0.1 per cent to 6,227.79.