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Dubai Market Slides 6pc As Global Crisis Deepens

DUBAI — The Dubai Financial Market (DFM) fell sharply on Sunday as investors reacted negatively to the mayhem seen in the international stock markets over the weekend on worries that steps taken by top nations of the world aren’t enough to contain deepening global financial crisis.

The Dubai’s stock benchmark index ended down 173.01 points, or 5.41 per cent, at 3,025 points – a grim start to this week’s trading. The Abu Dhabi Securities Exchange’s (ADI) General Index shed 73.79 points, or 2.30 per cent, to close at 3,133.51 points.

Except for a 3.6 per cent rise on Thursday, the Dubai market lost over a quarter of its value just last week. The DFM said foreign investors sold equities worth Dh571.6 million in the week ending October 9. UAE’s non-citizens bought Dh2.22 billion worth of shares, or 41 per cent of the total value of shares traded, and sold Dh2.79 billion of securities, Bloomberg quoted DFM as saying.

“Selling pressure, largely from foreign investors, continued on fear of what will unfold when the US and European markets will begin trading tomorrow,” Krishna Murthi, CEO of Dubai International Securities, told Khaleej Times.

Analysts said following steep declines last week investors are expecting the market to stabilise, especially after the UAE government decided on Sunday to take measures to protect the economy, promising to protect banks from credit risks and guaranteeing bank deposits and interbank deals. “I expect there will be a turnaround soon, especially after government’s assurances local investors feel the market will be stabilised,” Murthi said and added most of the shares have bottomed-out and valuations currently are attractive. Elsewhere in the Gulf, Qatar ended lower more than 6 per cent, Oman shed 5.67 per cent and Kuwait dipped 1 per cent. The Saudi index closed more than 1 per cent higher on Sunday following Saudi central bank’s move.

The market lost 6 per cent on Saturday. Shares in Emaar Properties plummeted 10 per cent to Dh5.13, Deyaar Development fell 8.3 per cent to Dh1.11 while Arabtech plunged 9.9 per cent to Dh6.93. Dubai Ports World fell 18.2 per cent on the Dubai International Financial Exchange – a lifetime low. Shares in the container port operator closed at $0.45. In its initial public offering last November, the stock was priced at $1.30.

imranmaqbool@khaleejtimes.com