Gulf stocks down sharply after OPEC stands pat

Stock markets in the Persian Gulf region ended trading on Sunday with sharp losses, as the shift in oil rents from producing nations to consumer countries further cristalised; after the price of oil reeled in reaction to OPEC's decision on Thursday to stand pat.

Hardest hit was Saudi Arabia's main stock exchange index, which dropped 4.99% to end the day at 8,625 points, near a one-year low.

Front month West Texas crude futures slid $7.35 to end the day at $66.15 on NYMEX, down by over 10%.

Developed countries, in particular, are expected to benefit, while the outlook for emerging economies is rather harder to read, as a strengthening US dollar - resulting from less recycling of 'petrodollars' into other currencies - may lead to thinner capital inflows.

In particular, there is interest in how Indian markets - given that is a large oil importer - behave.

US equities, in any case, are seen by some observers as standing to gain the most, as opposed to those from emerging market countries - if past patterns repeat themselves.

Abu Dhabi's benchmark fell 2.6% to 4,675 points and Qatar's by another 4.3%. Kuwait's index fell 3.4%, to 6,753 points, and Oman's bourse dropped 6.2%.

On Friday, Russia's rouble got whacked 3.6% lower to 50.4085 against the US currency unit, a new all-time low. The country stands to lose as much as $140bn a year as a consequence of the decline in oil prices, Finance Minister Anton Siluanov said last week.

Other oil and commodity exporting countries' currencies also fell back. Brazil's real surrendered 1.4% to trade at 2.5654 versus the 'greenback' by the end of trading. Canada's Loonie ceded 0.5% to 85.06 US cents. Norway's krone was at five-year lows.