Qatar’s benchmark stock index dropped the most in two weeks on speculation gains in the past month were overdone given concern about Europe’s sovereign-debt crisis and as oil declined.
Industries Qatar QSC, the Middle East’s second-biggest petrochemicals company, fell for the first time this week. Qatar National Bank SAQ, the Persian Gulf country’s biggest lender by assets, retreated as much as 1 percent. The QE Index decreased 0.3 percent, the biggest decline since Nov. 1, to 8,743.00 at the 1 p.m. close in Doha. The gauge has risen 3.6 percent in the past month. The Bloomberg GCC 200 Index fell 0.3 percent, trimming the past month’s gain to 1 percent.
“We’re certainly looking at Europe and international developments,” said Paul Cooper, Dubai-based managing director at Sarasin-Alpen & Partners Ltd., which oversees more than $500 million in the Middle East. “Qatar has been stronger than most markets in the Gulf and we could be seeing a bit of profit-taking.”
Emerging-market shares fell, with the MSCI Asia Pacific Index dropping as much as 1 percent, after the yield on Italian five-year notes surged following an auction and Spanish 10-year yields advanced to a euro-era record relative to German yields. German Finance Minister Wolfgang Schaeuble said Europe’s permanent bailout fund may not be implemented before 2013.
German Chancellor Angela Merkel’s Christian Democratic Union party voted to offer euro states a “voluntary” means of exiting the currency bloc. Europe’s STOXX Europe 600 Index dropped as much as 1.8 percent and the Standard & Poor’s 500 Index futures fell 1 percent.
Crude oil for December delivery fell as much as 0.6 percent to $97.51 a barrel. Gulf Arab oil exporters, including Saudi Arabia and Qatar, supply about a fifth of the world’s oil.
Industries Qatar slipped 0.7 percent to 135.3 riyals. Qatar National fell for the first time since Nov. 1, dropping to 150.8 riyals before closing at 151.8 riyals.
Kuwait’s gauge advanced 0.2 percent, and Bahrain’s BB All Share Index gained less than 0.1 percent. Abu Dhabi’s ADX General Index decreased 0.3 percent, while Dubai’s DFM General Index was little changed. Oman’s MSM 30 Index declined 0.4 percent. Saudi Arabia’s Tadawul All Share Index lost 0.2 percent.