The acceleration of the coronavirus continues to weigh on stock markets globally with the selloff by investors extending to regional markets in the Middle East.
In their first day of trading after the S&P 500 index in the US fell 11.5 per cent last week, markets across the Gulf followed the downward trajectory. It was the worst week for US equities since the 2008 financial crisis and oil also dropped to the $50 per barrel mark.
The Dubai Financial Market General Index dropped 4.5 per cent, while stocks in Abu Dhabi declined 3.6 per cent. Kuwait's regulator suspended trading in its Premier Market after the index slumped almost 11 per cent. Saudi Arabia’s Tadawul, the biggest Arab bourse by market capitalisation, fell 3.7 per cent. The main stock indexes in Bahrain and Oman also fell 3.4 per cent and 1.2 per cent respectively.
“It is a knee-jerk reaction, a domino effect [of the global equities drop]. We are not immune than other regions as we have Iran up north with so many cases [of the coronavirus],” said Nabil Rantisi, general manager for wealth management at Dubai-based Daman Investments. “The problem is that the process of containing the virus is causing a disruption to global supply chain …. the cash flow cycle is being disrupted and that is the main challenge.”
Global stocks were rattled last week, with the Dow Jones Industrial index slipping more than 11 per cent and Japan’s Nikkei dropping almost 10 per cent. The FTSE 100 in London, Hong Kong’s Hang Seng and the MSCI World Index slumped, 11.9 per cent, 4.3 per cent and 10.9 per cent respectively for the week.
Investors now fear a global recession as authorities around the world struggle to contain the virus, which has affected global trade and tourism. Global supply chains have been disrupted, as factories across mainland China remain idle as Beijing tries to contain the spread of the virus.
Shailesh Dash, founder of Dubai-based Al Masah Capital said equities, particularly US stocks, had a long bull run and were “due for a correction” and now some selective stock picking options are available to investors. “There is still weakness on the horizons …. it still remains to be seen what will be the impact of the coronavirus on both global trade and supply chain,” he added.
The World Health Organisation last week raised the alarm on the virus to "very high" from "high" but stopped short of calling the outbreak a pandemic. The WHO director general on Sunday, however, said panic and fear were having more of an impact on people than the virus itself.
Saxo Bank, however noted that the increased risk of a global pandemic could still have a major negative economic impact.
“A drop in consumer confidence, behaviour and spending may further negatively impact company earnings already under pressure from broken supply lines,” it said in a note to investors on Sunday.
The virus that has spread from its source in China's Hubei province has also affected South Korea, Italy and Iran. Global fatalities from the pneumonia-like infection neared 3,000 with the number of confirmed infection cases worldwide reaching about 86,000.
In Dubai, the main equities index was pulled down by banking and property stocks, with Emirates NBD dropping 6.7 per cent. Emaar Properties falling 5.1 per cent, while budget carrier Air Arabia dropped 7.1 per cent.
Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank, weighed heavy on the emirate's benchmark equities index with both losing more than 5 per cent each. National Bank of Kuwait's 14.5 per cent drop and global logistics firm Agility's 9.9 per cent slide weighed down the market in Kuwait. In Saudi Arabia, of 199 listed companies, 190 lost value. Al Rajhi Bank slumped 3.9 per cent and National Commercial Bank fell 4.1 per cent at the market's close.
The drop in the regional equities, Mr Rantisi said, does open a window of opportunity for investors.
“I think this creates opportunities like any other crisis …. certain companies with great value for money, you are going to get them at a discount now,” he said. “Nothing stays in one direction,” he said adding that market will correct itself once people starts buying into dips.
Volatility also hit oil markets last week as the reverberations of the virus raise concerns about oil demand. Commodity prices reflected the risk-off sentiment with Brent, the most widely used pricing benchmark. They fell almost 14 per cent over the week, while WTI slid more than 16 per cent to below $45 per barrel.
“The fixation for oil markets” will be Opec and its allies meeting in Vienna on March 5 and 6, Edward Bell, commodity analyst at Emirates NBD wrote in a note on Sunday. “Opec+ is largely expected to endorse more production restraint.”
Gold, a traditional haven in times of volatility, traded near its 2013 highs last week, but Swiss private bank Lombard Odier on Sunday said in case of a “full-blown risk-off episode” associated with a global pandemic, the yellow metal could see further gains.
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
The 12
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
Killing of Qassem Suleimani
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
RESULTS
1.45pm: Maiden Dh75,000 1,200m
Winner: Lady Parma, Richard Mullen (jockey), Satish Seemar (trainer).
2.15pm: Maiden Dh75,000 1,200m
Winner: Tabernas, Connor Beasley, Ahmed bin Harmash.
2.45pm: Handicap Dh95,000 1,200m
Winner: Night Castle, Connor Beasley, Satish Seemar.
3.15pm: Handicap Dh120,000 1,400m
Winner: Mystique Moon, Sam Hitchcott, Doug Watson.
3.45pm: Handicap Dh80,000 1,400m
Winner: Mutawakked, Szczepan Mazur, Musabah Al Muhairi.
4.15pm: Handicap Dh90,000 1,800m
Winner: Tafaakhor, Sandro Paiva, Ali Rashid Al Raihe.
4.45pm: Handicap Dh80,000 1,950m
Winner: Cranesbill, Fabrice Veron, Erwan Charpy.
The%20specs
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Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
The biog
Age: 35
Inspiration: Wife and kids
Favourite book: Changes all the time but my new favourite is Thinking, Fast and Slow by Daniel Kahneman
Best Travel Destination: Bora Bora , French Polynesia
Favourite run: Jabel Hafeet, I also enjoy running the 30km loop in Al Wathba cycling track
UAE currency: the story behind the money in your pockets
COMPANY%20PROFILE
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F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
More from Neighbourhood Watch:
Killing of Qassem Suleimani
Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
