U.S.-Israeli missile test raise jitters at Gulf Arab stock markets

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DUBAI, Sept. 3 -- New geopolitical tensions surrounding the Syrian crisis dragged down equity exchange indices from Kuwait to Oman on Tuesday.

A joint ballistic missile maneuver in Mediterranean waters launched by the United States and Israel shocked investors and sent down the Dubai stock market by 3.72 percent to 2,489.38 points, representing a six-week low whereas only three stocks rose in value.

The launch of missiles was reported firstly by Russia, a key ally of Syria's President Bashar al-Assad and was later confirmed by the Israeli ministry of defense.

Rising gold and oil prices also hinted at fresh new worries over a worsening mood in the Syrian crisis. Gold edges up by 14 U. S. dollars to 1,411 dollars per ounce, while the black gold (U.S. crude) traded 0.88 percent higher at 108.57 dollars per barrel.

After early advances, Dubai's Emirati sister market in Abu Dhabi also declined on the news, closing 1.83 percent lower at 3, 733.96 percent. Earlier in the day, bank HSBC said the United Arab Emirates (UAE) purchasers' managers index (PMI) which measures the performance of the private non-oil sector posted 54.5 points last month. While a reading above 50 indicates an expanding economy, the gauge was at the same level like in July.

All other Gulf Arab bourses also ended in the red on the increased tensions in eastern Mediterranean. At the Bahrain Bourse in Manama, not a single share gained in value, as listed banks plummeted. The Saudi Arabian Tadawul Index headed down by 1.29 percent to close at 7,831.76 points. The Kuwait Stock Exchange dived 1.73 percent to hit a four-month low at 7,464.67 points. The MSM-30 Index in Muscat, Oman, fell 0.54 percent to 6,694.58 points.

• Gulf Arab equity indices up to multi-month highs
• Gulf Arab region struggles to ease hospitals shortage
• No sign of "last-minute-swing" in Gulf Arab markets
• Gulf Arab markets finish Q1 in the red
• US Homeland Security chief in Israel for working visit
• Sovereign wealth funds to plump Gulf Arabs' financial muscle
• Gulf Arab stock markets look for direction
• Gulf Arab bourses start with modest debut into second half of 2010
• No progress announced after U.S. envoy meets Israeli premier

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