Business | Markets
UAE shares fall on global concerns
Stocks in Dubai and Abu Dhabi declined for the second straight day yesterday as stocks worldwide continued to be volatile amidst worries about the credit crisis further worsening and a slowdown in the US economy.
- By Gaurav Ghose, Financial Features Editor
- Published: 00:05 July 17, 2008
Dubai: Stocks in Dubai and Abu Dhabi declined for the second straight day yesterday as stocks worldwide continued to be volatile amidst worries about the credit crisis further worsening and a slowdown in the US economy.
Global uncertainty continued to feed into the minds of traders with the domestic traders continuing to sell-off and foreign investors staying away from the bourses. Volumes traded continued to be low with Dubai and Abu Dhabi trading 215 million shares with a turnover of Dh864.82 and 203.10 million shares valued at Dh1.29 billion respectively.
Following the remarks of Federal Reserve Bank chairman Ben Bernanke that the US economy is going to slow down with inflation risk on the increase, the dollar touched a new low against the yen since March.
Led by Emirates NBD and Dubai Financial Market, the Dubai benchmark shed 1.32 per cent to close at 5223.17, its lowest in six months. Morgan Stanley downgraded its rating of DFM to "underweight" due to disappointing trading pattern witnessed in the second quarter of 2008. The share price fell 1.72 per cent to Dh4.58.
Emirates NBD tumbled 4.60 per cent to Dh11.40. Shuaa Capital shed 3.72 per cent to end at Dh7.25 after it rose 15 per cent leading to the suspension of its trading on Tuesday. Emaar lost 1.46 per cent to Dh10.10.
The Abu Dhabi Securities Exchange Index closed down 1.04 per cent to 4888.87. Of 37 traded stocks, 28 declined and seven advanced, with two remaining flat. Banking, telecom, energy and real estate sectors lost 0.44 per cent, 0.50 per cent, 1.26 per cent and 3.44 per cent.
Aldar Properties and Sorouh Real Estate closed at Dh11.50 and Dh8.84, down 3.77 per cent and 2.96 per cent respectively. etisalat declined 0.50 per cent to Dh19.85 while Dana Gas fell 2.21 per cent to Dh1.77.
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