Dubai index drops to 45-month low
Banks and real estate drag Dubai's index to its lowest close in 45 months
Dubai: UAE shares were badly battered on the first day of the trading week, led by losses in real estate and banking sectors, which witnessed panic selling by individual investors gripped by worries of a worse than expected slowdown. Oil prices coming down is also a concern among investors.
The Dubai Financial Market tumbled close to six per cent to end at 2631.46, it's lowest since February 2005, dragged by Emaar Properties which lost 9.94 per cent to Dh4.44, well below its book value. It was the day's top loser, falling to its new low since November 23, 2004. Union Properties and Deyaar Development shed 9.69 per cent and 7.41 per cent respectively.
Mohammad Ali Al Abbar, Chairman of Emaar, talking to reporters on the sidelines of the World Economic Forum in Dubai, said that the growth of the company is strong but the company may have to "adjust a little bit" in the face of the global slowdown and a liquidity squeeze.
The Emaar share price has tumbled more than 70 per cent in 2008 and when asked about the continuing decline, he retorted by saying, "I would say GE share prices are down, Johnson and Johnson prices are down, so we are a part of the global scene. So whatever needs to be done have to be conducted, proper business have to be done."
The DFM index is down a massive 55.6 per cent on the year, the worst performing of all the Gulf bourses.
The Abu Dhabi Securities Exchange Index fell 3.95 per cent to 3190.66 led by losses in real estate, banking, energy and telecom sectors. Aldar Properties, Sorouh Real estate and Rak Properties fell 7.81 per cent, 8.27 per cent and 6.12 per cent respectively. National Ban of Abu Dhabi plummeted 9.35 per cent.
The Emirates Securities market Index decreased by 4.22 per cent to close at 3556.91. More than Dh22 billion was wiped out on the day.
