Dubai: Dubai index extended losses on Wednesday led by Emaar Properties and Arabtec as investors continued to fret about falling crude oil prices and growth globally. The Abu Dhabi index also ended weak led by real estate firms.
The Dubai Financial Market General Index ended 1.73 per cent lower at 4,492.75, taking the total decline to more than 9 per cent this week. Emaar Properties ended 1.45 per cent lower at Dh10.20. Arabtec ended 1.26 per cent lower to end at Dh3.92 per share.
“The correction shouldn’t last for too long. Oil prices are down and there are global concerns, but the underlying health of regional economies are strong and would continue to remain so. It’s an opportunity to invest and to get into stocks at attractive levels” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.
More than $700 billion (Dh2.5 trillion) has been erased from US equities since October 8 amid concerns that a global slowdown will negate the benefits of the Federal Reserve keeping interest rates near zero for longer.
Brent crude extended its biggest one-day collapse in three years amid speculation Opec will refrain from eliminating a glut while demand growth slows to the lowest since 2009.
On the broader Dubai index, out of a total of 31 shares traded on the exchange, shares of 24 companies declined. Shares of Gulf Navigation ended 4.87 per cent lower after the company said it has received a nod from the regulator to convert $60 million bonds into shares to settle its debt.
In Abu Dhabi, the general index ended 0.24 per cent lower at 4,879.92. Abu Dhabi Ship Building fell more than 9.89 per cent in trade. Out of a total of 28 companies, shares of six companies rose, while 15 of them declined and the other seven remained steady.
