Business | Markets
Black Wednesday for UAE markets
The UAE stock markets suffered another day of heavy losses as investors went on a panic selling spree.
- By Gaurav Ghose, Financial Features Editor
- Published: 13:47 October 8, 2008
- Image Credit: Gulf News Archive
- Stocks in the UAE were brunt but real estate and bank and finance companies continue to suffer the most.
Dubai: The UAE stock markets along with other Gulf markets suffered another day of heavy losses as investors went on a panic selling spree not able to make sense of where it will all end amid the massive sell-offs all around the world on Tuesday and in Asian markets on Wednesday.
"This is not a Black Wednesday, this is charcoal boiled Wednesday," said Vyas Jayabhanu, head of Al Dhafra Brokerage in Abu Dhabi. "It's all a chain reaction and it's clear that what happens in America deeply affects the rest of the world. It is indeed serious and looks like a great depression is likely to revisit us."
Locally, stocks across the board were brunt but real estate and bank and finance companies continue to suffer the most. The credit squeeze among the banks is likely to worsen, feel analysts as inter-banking lending rates in Saudi Arabia and UAE were raised again on Wednesday.
"Domestic insitutions and companies have started to sell-off and that is a scary sign," Jayabhanu said. "There are large sell orders from the local institutions."
The Dubai Financial Market General Index plunged 284 points or 8.43 per cent to close at 3085.02. Major losers included Arabtec, which tumbled 15.00 per cent, Air Arabia shed 9.24 per cent, Emaar fell 7.41 per cent, Union Properties plummeted 12.83 per cent and mortgage giants Amlak Finance and Tamwell lost 14.17 per cent and 13.83 per cent.
The Abu Dhabi Securities Exchange Index retreated 6.43 per cent to end at 3176.94. Real estate, energy and banking sectors indices fell 9.62 per cent, 9.34 per cent and 6.29 per cent respectively. Aldar Properties lost 9.70 per cent, Sorouh slid 9.75 per cent, Dana Gas was down 8.70 per cent and Abu Dhabi Commercial Bank fell 9.72 per cent.
Related Links
- Dubai leads Arab market crash
- Indian shares stage late rally
- Gulf shares drop
- Global stocks and US futures plunge
- Asian markets plunge on credit woes
- Britain unveils major bank rescue plan
- How low can the markets go?
- Another day of decline in UAE
- UAE credit fundamentals to withstand liquidity squeeze says report
More from Markets
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
