Dubai: Dubai index shed as much as 3 per cent on Tuesday followed by Saudi in the Gulf region, joining its global peers as concerns over growth resurfaced. The Abu Dhabi index also fell.

The Dubai Financial Market (DFM) General Index fell 2.91 per cent to end at 4,571.90, after falling to an intraday low of 4,564.80, the level last seen in early July. The Saudi’s Tadawul, which fell as much as 2.9 per cent, saw the second biggest decline in the region.

“It’s the change of mood in investor sentiment after the IMF region, the speed of drop in oil prices has forced the change of strategy. They want to exit equities as of now and increase exposure to bonds. The speed of volatility is pushing investors away from equities,” ” said Mohammad Ali Yasin, managing director at NBAD Securities.

European stocks also traded lower as concerns over growth resurfaced and dollar rebounded. About $744 billion was erased from US equities since Oct. 8 amid concern that a global slowdown will negate the benefits of the Federal Reserve keeping interest rates near zero for longer.

Arabtec fell 4.57 per cent to close at Dh3.97. Emaar Properties settled 3.72 per cent to end at Dh10.35, after the company said it received a number of offers for its plot in downtown Dubai.

The company said it has not reached any agreement on sale, adding such sale is in “normal course” of its business.

The DFM General Index has been the best performing in the Gulf region and the second best performer in the world, with 35 per cent gains mainly on the back of strong economic fundamentals and a solid recovery in the real estate market.

On the broader index, out of a total of 30 shares traded on the exchange, shares of 28 companies declined.

In Abu Dhabi, the general index ended 1.12 per cent lower at 4,891.58. National Marine Dredging fell more than 9 per cent in trade. Out of a total of 31 companies, shares of 7 companies rose, while 21 of them declined and the other 3 remained steady.

Negative trend:

“We have seen the high of the market for 2014. Negative trend will continue for sometime until the announcement of third quarter results, which could force investors to focus on internal fundamentals than external,” said Yasin.

Companies in the UAE will start announcing results by the end of October. The Dubai index is cornered by real estate companies and banks.

“We will be happy if we are able to protect the position where we are today. Based on uncertainty I see now in the market, if we close at 5,000 we will be happy, but for that to happen we need to better corporate results,”

Also falling crude oil prices is also likely to weigh on sentiment in the short-term.

West Texas Intermediate futures dropped as much as 1.5 per cent in New York. Brent for November settlement fell as much as $1.80, or 2 per cent, to $87.09 a barrel on the London-based ICE Futures Europe exchange, the lowest since December 2010.

Oil demand will expand at the slowest pace since 2009 this year as global economic growth weakens, the International Energy Agency said on Tuesday.