Business | Markets
UAE shares fall for fifth successive day
UAE shares fell for the fifth successive day, with the Dubai benchmark sliding almost five per cent to bring it down to a fresh four-year low as investor sentiments on real estate and banking continue to be grim.
- By Gaurav Ghose, Financial Features Editor
- Published: 23:29 December 24, 2008
Dubai: UAE shares fell for the fifth successive day, with the Dubai benchmark sliding almost five per cent to bring it down to a fresh four-year low as investor sentiments on real estate and banking continue to be grim.
"Individual and institutional investors are selling as they see no value of losing money on daily basis and the need to raise funds to meet their other financial commitments," said Tariq Qaqish, fund manager, asset management group, Al Mal Capital.
"Also, fourth quarter results, we will witness significant investment losses of listed companies, especially in the financial sector due to the drop of investment valuations."
Since last Thursday, the Dubai Financial Market General Index has slumped more than 17 per cent, closing 4.97 per cent lower yesterday at 1609.56, the lowest level since September 2004.
The day began on a sour note with the news that Emirates Securities and Commodities Authority (Esca) sent a circular to Emaar Properties informing them that the expiry of the grace period of buyback of shares was yesterday, pointing also that 200,000 shares, comprised a mere 0.003 per cent of the total equity capital.
Esca in a letter notified Emaar that its purchased shares should be sold in a period of no more than two years from the last purchase. The two-year grace period will expire on October 27, 2010.
"After the Esca's news came out there was a feeling of a real let down among the traders," said Vyas Jayabhanu, head of al Dhafra Financial Brokerage. "Markets had relied on Emaar feeling that their intervention would have helped revive it."
Emaar fell 6.64 per cent to Dh2.25, its lowest value since June 2004. Emaar in a statement said: "Emaar's activities related to the share buyback programme were carried out in the best interest of the company and its investors, and in line with current global financial conditions."
Your comments
If this is the start of a recession in the world, then we are only at the start. who knows when it will start recovering, which I do not think will happen next year.
Ijlal
Abu Dhabi,UAE
Posted: December 25, 2008, 15:14
Do not worry. I beleive everything will be all right within six months.
Sabab
Dubai,UAE
Posted: December 25, 2008, 13:55
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