Persian Gulf Shares Retreat on Oil; Taqa Fall Most in Two Weeks

By Zainab Fattah

Jan. 11 (Bloomberg) -- Persian Gulf shares declined after crude oil fell a fourth day, raising concern lower oil prices may hurt government spending in the region.

Aramex PJSC dropped to its lowest in almost two weeks after it said it may not be able to raise as much money as previously stated for acquisitions. Abu Dhabi National Energy Co., the state- owned energy company that’s known as Taqa, slid the most in more than two weeks. National Bank of Kuwait SAK lost after al-Rai reported the bank may pay a lower dividend for 2008.

The Dubai Financial Market General Index lost 1.9 percent to 1,696.49 at 12:21 p.m. local time. The Abu Dhabi Securities Exchange Index decreased 0.8 percent, while the Kuwait Stock Exchange Index declined 1.4 percent, retreating for a third day.

“The drop in oil prices is adding to the prevailing bearish sentiment across Gulf markets,” Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC, said in an interview today. “There are legitimate worries of a possible drop in government spending.”

Crude oil for February delivery fell 87 cents, or 2.1 percent, to $40.83 a barrel on the New York Mercantile Exchange on Jan. 9, the lowest settlement in 2009. Oil dropped 12 percent last week after gaining 23 percent the week before.

Saudi’s Index Gains

Aramex PJSC lost 3.3 percent to 0.88 dirham, heading for its lowest close since Dec. 31. The Middle East’s biggest courier service company said it’s not sure about its ability to raise $200 million for acquisitions after banks tightened lending because of the global financial crisis.

Taqa slid 5.1 percent to 1.11 dirhams, its biggest drop since Dec. 24.

National Bank of Kuwait declined 1.7 percent to 1,160 fils. The country’s largest lender may pay a cash dividend of 60 fils or less, following guidance from the Central Bank of Kuwait, al-Rai reported, without citing anyone. The bank was prepared to pay 70 fils a share, the newspaper said.

Saudi Arabia’s Tadawul All Share Index added 0.1 percent. Oman’s Muscat Securities Market 30 Index rose 0.9 percent, while the Bahrain All Share Index decreased 0.5 percent. Qatar’s Doha Securities Market Index lost 1 percent.

To contact the reporter on this story: Zainab Fattah in Dubai on zfattah@bloomberg.net