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Greek debt problems drag bourses lower

DUBAI — UAE bourses on Sunday closed sharply lower following a brutal selloff on global markets last week amid concerns the Greek debt crisis could derail the global economic recovery.

Dubai Financial Market’s General Index, or DFMGI, recouped some of its early-trade losses, after a positive opening in Saudi Arabia, which helped boost sentiment. The benchmark index closed 1.21 per cent lower at 1,712.90 points, after opening down more than four per cent on concerns of debt issues in the eurozone.

Out of 26 stocks traded yesterday, only three posted gains, while two remain unchanged and 21 declined in thin trade as only 222 million shares worth Dh432.45 million changed hands on the exchange.

National Central Cooling Company, or Tabreed, tumbled 4.91 per cent to 0.43 fils. Air Arabia, the region’s largest low-cost carrier, retreated 3.4 per cent, the most since March 31, to 90.8 fils.

“The international melt-down scenario related to Greek sovereign debt” is pushing Arab markets lower,” said Yazan Abdeen, a fund manager at ING Investment Management (Dubai) Limited. “If you think in the gloom scenario, international demand falls and hence oil, and that leads to less sovereign government revenue.”

Emirates NBD, the region’s largest bank, declined 1.67 per cent to Dh2.95, Arabtec Holding fell 1.60 per cent to Dh2.46 and Emaar Properties slipped 1.04 per cent to Dh3.81. Emirates Integrated Telecommunications Company, or du, dropped 2.31 per cent to Dh2.54 and Dubai Financial Market lowered 0.58 per cent to Dh1.71.

Real estate, banks fall at ADX

Abu Dhabi Securities Market’s General Index, or ADXGI, dropped 1.41 per cent, led by real estate and banking stocks. Aldar Properties fell 3.9 per cent to Dh3.73 and Sorouh Real Estate fell to Dh2.24.

First Gulf Bank, National Bank of Abu Dhabi and Abu Dhabi Commercial Bank fell into negative columns and closed at Dh18.05, Dh11.95 and Dh1.81 respectively.

In terms of value, Aldar Properties remained a most active share on ADX as its Dh20.44 million shares changed hands in thin trade. In terms of volume, Dana Gas remained on top as its 20.74 million shares were traded on the exchange.

muzaffarrizvi@khaleejtimes.com