UAE stock markets end deep in the red

UAE bourses extended their losses today with Dubai diving 6.12 per cent to 1638.05 points. Financial and property firms were hit hard by investors withdrawing funds from the markets. Emaar, Arabtec and Deyaar all lost more than nine per cent on high volume. Dubai Islamic Bank went down 9.91 per cent. Dubai’s DFM index slumped to a 21-week low, falling for the fourth session in five as with no specific new on Dubai World’s debt restructuring. The statement of Dubai’s finance chief Abdulrahman Al Saleh that the government’s support fund has already injected Dh9 billion into Dubai World had no immediate effect on the trading patterns.

In Abu Dhabi, the ADX index closed 3.36 per cent lower at 2538.73 points. National Bank of Abu Dhabi fell 6.3 per cent and Aabar Investments dropped 5.3 per cent. Dubai’s Nasdaq came back to minus 4.89 per cent after having touched minus seven per cent during the day with port operator DP World up 1.45 per cent at 3pm.

Markets at 01.00pm

Continued selling pressure dragged the UAE stock markets down in the early afternoon today. The Dubai Financial Market index fell 6.22 per cent as of 1pm to 1,636.22. Heavyweights Arabtec, Deyaar, Emaar and Takaful all fell more than nine per cent. Only Bahrain’s Al Salam Bank, listed in Dubai, was in the green. Emaar has fallen more than 30 per cent in the five trading sessions since Dubai World asked for a debt restructuring. Air Arabia and Emaar were the most actively traded stocks with unusual high volumes.

In Abu Dhabi, the index fell 3.22 per cent to 2541.10, with RAK Ceramic, Abu Dhabi National Hotels, Al Khazna Insurance and Arkan Building Materials all down more than nine per cent.

Nasdaq Dubai dived 6.83 per cent to 1514.65 points. DP World went down 4.93 per cent

Analysts say that the selling pressure is not likely to ease until there are concrete news about the restructuring of Dubai World and information about the outcome of talks with creditors. High volumes indicate that mostly foreign funds are withdrawn from the markets. However, some analysts believe that especially the Dubai stock market is already oversold, and – as soon as the restructuring is in place - investors will take their chance and accumulate cheap stocks again.

Markets at 11.50am

Selling pressure continued in the local markets, which extended losses this morning at 11.50 am, with Dubai dropping by 5.71 per cent and Abu Dhabi by 2.80 per cent. Dubai has lost 21 per cent in the last five trading sessions after Dubai World announced a request for postponement of about $26 billion debt payment.

The Dubai Financial Market General Index fell to 1645.29, with Emaar Properties and Arabtec leading the list of losers. Emaar was down 9.84 per cent to Dh2.84 and Arabtec fell 9.86 per cent to Dh1.92.

The Abu Dhabi Securities Exchange index fell to 2553.49. Among the major losers were Rak Ceramics which slumped 10 per cent to Dh2.80, and Aldar and Sorouh, the two major real estate stocks in the capital, losing 8.52 per cent and 8.91 per cent.