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Dubai hits 10-week low as global gloom weighs

DUBAI — UAE markets on Wednesday turned bearish in thin trade as the investors stayed away following global stocks slide on account of German trading curbs to strengthen single European currency and overcome the debt crisis.

Dubai Financial Market’s General Index index dropped to a 10-week low as traders exit in the wake of a worldwide equity sell-off following new measures announced German government to shore up the ailing euro. The benchmark index declined 28.45 points, or 1.66 per cent to 1,685.76 points, its lowest close since March 11.

Out of 29 stocks traded yesterday, not a single company closed in positive columns as 14 only three remain unchanged and 26 declined in across the board selling as volumes dropped to 111.04 million from 151.93 million shares a day before.

“Markets are falling mostly on concerns about the second tier consequences of euro weakness and lower levels of demand for Middle East products,” said Zahed Chowdhury 
of Al Mal Capital. This essentially means energy and petrochemical products, but a declining euro could also be negative for the regional property sector.

Emaar Properties fell 2.62 per cent to Dh3.71 and Emirates NBD declined 2.36 per cent to Dh2.89. Arabtec dropped 2.95 per cent after UBS downgrades the builder to “sell” from “neutral”.

Property, banks weigh on ADX

Abu Dhabi Securities Market’s General Index followed the trends in neighbouring emirates as banking and property shares weighed on the market. The benchmark index declined 12.44 points, or 0.45 per cent, to 2,775.26 points.

Finanace House surged 7.82 per cent to Dh5.10, RAKBank rose 2.50 per cent to Dh4.10 and Abu Dhabi Commercial Bank climbed 1.66 per cent to Dh1.81.

On negative sides, Abu Dhabi Ship Building company plunged 8.03 per cent to Dh3.32 and Aldar Properties dropped 3.15 per cent to Dh3.62. 
 — muzaffarrizvi@khaleejtimes.com