Business | Markets
Two-day rally comes to an end as real estate woes continue
The two-day rally in the UAE markets came to an end yesterday, with Dubai and Abu Dhabi indices falling 1.17 per cent and 0.41 per cent respectively.
- By Gaurav Ghose, Financial Features Editor
- Published: 23:43 August 20, 2008
Dubai: The two-day rally in the UAE markets came to an end yesterday, with Dubai and Abu Dhabi indices falling 1.17 per cent and 0.41 per cent respectively.
With real estate sector woes continuing, Dubai Financial Market General Index closed at 4,956.23 and the Abu Dhabi Securities Exchange Index ended at 4,547.17. Total value traded in Dubai increased 43 per cent to Dh753.69 million. However Abu Dhabi witnessed a fall of 18 per cent to Dh457.90 million.
In Dubai, real estate index declined 1.77 per cent, with Union Properties leading the list of losers. It dropped 5.88 per cent to close at Dh4.32, it's lowest since April 3, according to Bloomberg. The company had announced that it was planning to sue Morgan Stanley after the investment bank issued a report that the real estate market in Dubai could drop 10 per cent when supply comes online and overtakes demand between 2008-10.
Emaar Properties also fell, shedding 1.33 per cent to end at Dh9.61. Deyaar Development dropped 1.02 per cent to Dh1.94.
Mortgage companies Tamweel and Amlak Finance fell 1.65 per cent to Dh5.95 and 2.95 per cent to Dh3.95 respectively.
In Abu Dhabi, real estate index retreated 1.79 per cent. Aldar Properties, the stock which had the highest turnover of Dh105.88 million, closed 2.35 per cent down to Dh10.40. Sorouh Real Estate also weakened 1.14 per cent to Dh7.79.
According to EFG-Hermes daily report, in Dubai, local, GCC and Arab investors were net buyers, while foreign investors were net sellers. In Abu Dhabi, local and Arab investors were net buyers and foreign investors were net sellers.
More from Markets
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
