Business | Markets
Dubai investors exercise caution
Not many takers for stocks due to lack of demand as sentiment remains low
- By Aya Lowe, Staff Reporter
- Published: 00:00 December 1, 2009
Dubai: Investors at the Dubai Financial Market yesterday were outnumbered by newsmen as the media flocked to see if fears sparked on Wednesday had been realised.
As news representatives read out their updates and cameras snapped the frowning expressions of the faces watching the boards, the small number of investors that remained since the markets opened looked on in despair.
"There has been no movement, no one is interested in Dubai. I made a big loss today. I didn't want to wake up!" says Ali Ebrahim, an investor gesturing wildly at the boards.
While markets yesterday opened calmly in Europe, Dubai's main stock exchange dropped more than 7.3 per cent on the first day of trading since Dubai World announced the restructuring of part of its $59 billion debt repayments.
Sushil Malhotra, a small investor with around Dh100,000 in the market, says that although he put his sell offer in at 9.35am, there were already 18 million shares up for sale by other investors. Nearing 1.30pm, only 1.5 million had been sold.
"I don't think the market will collapse the way people are thinking it will. Banks have already taken measures to increase liquidity," he said.
Hafiz Wafe, a teacher in the Dubai Modern High School who has been suffering losses for the last two years, was hit hard yesterday. "There is no opportunity to sell. We're just watching." Kishore Kumar, an expatriate investor, believes the upcoming holidays will help the market.
"Maybe during that break the international markets will have time to recover," he said.
More from Markets
More from Business
Business Editor's choice
-
China breaks West's solar monopoly
Some countries in the world, especially Germany and the United States, have made considerable efforts to invest in developing solar energy cells
-
Burberry store spree will cut profit
Trenchcoat maker forges ahead with investment strategy targeting emerging markets
-
Laws needed to spur region bond markets
UAE Central Bank calls for creation of a centralised Sharia board to facilitate the sale of sukuk
