Business | Markets
Gulf shares fall for a second day on speculations about global recession
Gulf shares declined for a second day on speculation that measures taken by governments won’t prevent a global recession.
- Bloomberg
- Published: 13:32 October 16, 2008
Dubai: Gulf shares declined for a second day on speculation that measures taken by governments won't prevent a global recession, cutting demand for the region's energy exports and slowing foreign investments.
Arabtec Holding PJSC, the company building the world's tallest tower in Dubai, fell for the third time this week, declining 18 per cent in the past two days. Dubai Islamic Bank PJSC, the UAE's biggest bank complying with Muslim banking rules, also plunged for a second day.
“We're seeing a total confidence crisis in the market,'' Motaz Irshaid, an institutional trader at Al Futtaim HC Securities in Dubai, said in a telephone interview. “The smart money is leaving the region led by foreign and institutional investors. Plunging oil prices and liquidity constraints aren't helping either.''
The Dubai Financial Market General Index lost 5.9 per cent to 3,224.28 at 11:15 a.m. local time, bringing the two-day slump to 13 per cent. The Abu Dhabi Securities Exchange General Index retreated 4.4 per cent and Oman's Muscat Securities Market 30 Index fell 5.5 per cent.
Dubai Financial Market PJSC earlier this week said foreign investors were net sellers of 571.6 million dirhams ($152 million) of securities in the week ending Oct. 9. Crude oil fell for a third day, taking its decline from the July record to more than 50 per cent. Oil for November delivery fell as much as 4.1 per cent to $71.51 a barrel in after-hours trading on the New York Mercantile Exchange.
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