Dubai stocks decline significantly

Abu Dhabi: The Dubai Financial Market (DFM) index fell 1.84 per cent yesterday to 1,513.49, its lowest level since March 2009.

The Abu Dhabi's market gauge slipped 1.29 per cent in line with the decline in other regional markets on lower than estimated jobs growth in the US.

It was also due to concerns the debt crisis in the peripheral euro zone countries would spread and slow the global economic recovery.

"There is a lack of volume and lots of uncertainty in the (Dubai) market. There is hardly any liquidity," said a market analyst.

The Kuwait Stock Exchange index and Qatar's QE Index declined 0.4 per cent yesterday.

Bahrain's gauge and Saudi Tadawul All Share index retreated less than 0.1 per cent. Real estate major Emaar led the decline on the Dubai market.

Shares of other heavily traded companies such as Arabtec, DFM, Dubai Islamic Bank and Air Arabia also fell.

About 67.9 million shares worth Dh112.06 million were traded in Dubai yesterday. Among the 26 companies traded, five rose, 20 fell and one remained unchanged.

Access to shares

DFM investors are now pinning their hopes on having access to Nasdaq Dubai's shares.

This would boost the volume on DFM, and help the overall market.

About 17.12 million shares of Emaar worth Dh53 million were traded on the DFM Sunday.

Market participants said any major market rebound in Dubai would only be led by a recovery in the local real estate sector.

The Abu Dhabi Securities Exchange (ADX) general index also fell yesterday as the bearish on the global and regional bourses hit investor confidence.

"The share valuations look attractive, but the investors are hesitant, currently. With volumes on the market at such low levels, investors fear they may not be able to sell stocks easily," said a market analyst.

Analysts said the Abu Dhabi market could not remain isolated from the current downturn in the global and regional markets.