UAE markets plunge as investors continue panic selling

Dubai: The Dubai and Abu Dhabi markets plunged on Sunday on the opening day after the Eid Al Fitr holidays, dashing hopes of a turnaround after the US government passed the much awaited $700 billion bailout package on Friday.

The news of merger talks between Islamic mortgage giants Amlak Finance and Tamweel and also the announcement of Dubai International Financial Centre (DIFC) Investments' launch of a Dh12 billion real estate fund failed to enthuse the investors, who went on a panic selling spree to bring down the indices.

The Dubai Financial Market General Index tumbled 283.35 points or 6.86 per cent to 3844.27 with 28 stocks declining, one going up and one remaining flat.

The Abu Dhabi Securities Exchange Index fell 4.72 per cent to close at 3769.84. Of 37 stocks traded on Sunday, 29 fell, six advanced and two remained unchanged.

Among the major losers were the banking and finance and real estate sector stocks.

On the DFM, Emaar Properties, the most liquid stock of the day with a turnover of Dh607.31 million, slid 12.26 per cent to Dh6.80.

Union Properties and Deyaar Development edged down 6.38 per cent and 5.59 per cent to end at Dh2.79 and Dh1.52 respectively.

On ADX, Aldar Properties crashed 9.16 per cent to close at Dh7.24. Sorouh Real Estate suffered too, falling 9.26 per cent to Dh6.17.

Tamweel and Amlak fell 7.37 per cent and 3.94 per cent to close at Dh3.52 and Dh3.17 respectively.

Most investors, according to traders and analysts, felt that a lack of clarity on the merger led to their punishing the stocks.

Tamweel's has been in the spotlight in recent months for all the wrong reasons after inquiries were lodged against some of its former executives in corruption and financial misappropriation cases.

On Abu Dhabi, First Gulf Bank declined 7.98 per cent to end at Dh15.00. Abu Dhabi Commercial Bank and National Bank of Abu Dhabi also fell, declining 9. 07 to Dh3.21 and 5.72 per cent to Dh14.00 respectively.