Global stock market rout affects sentiment in UAE

Dubai: UAE equities on Tuesday lost ground, dragged down by slides in European, Asian and US stocks and the negative sentiment surrounding dollar's new low against the euro.

"Fundamentally, there is nothing wrong with our stocks here - their performances have been strong," said Mousa Haddad, head of trade, discretionary mandate, National Bank of Abu Dhabi. "But the investors are psychologically affected by the current global sell-off."

European stocks sank to their lowest levels since 2005 and US financial stocks lost heavily on Monday on fears of the credit crisis spreading further. In Asia, the decline was widespread, with Nikkei, Hang Seng, Shanghai and Taiwan losing.

Volumes continued to be on the lower side, with Dubai trading 397.99 million and Abu Dhabi 129.63 million.

The Dubai Financial Market General Index was down by 0.44 per cent at 5292.99. Ajman Bank, Air Arabia, Emaar and Dubai Financial Market were some of the stocks which declined.

After Dubai Financial Market allowed Shuaa Capital to treat GCC nationals the same as UAE nationals, effectively allowing 100 per cent foreign ownership, its stock hit the 15 per cent limit and was suspended from trading. It closed at Dh7.53, up 14.96 per cent.

The Abu Dhabi Securities Exchange Index shed 0.25 per cent to close at 4940.08. eitisalat, despite second quarter record profits, closed 0.25 per cent lower at Dh19.95. Some of the stocks which also lost included Aldar Properties, Sorouh Real Estate, Dana Gas and Aabar Petroleum Investments.