Dubai: UAE markets lost ground after Dubai Holding announced a loss of Dh23.5 billion for 2009. The announcement came after much delay and included a possible rollover of the Dubai Holding Commercial Operational Group's debt.
The Dubai Financial Market index closed at 1,531, its lowest in 14 months, after shedding 3.06 per cent. The Abu Dhabi Securities Exchange index hit a six-month low after losing 1.97 per cent with all real estate stocks and banks taking a beating.
"I don't think Dubai Holding's news helped. However, I don't believe we were looking to price in more from its loss," said Ali Khan, director and head of brokerage at Arqaam Capital.
Amidst a global equity slump yesterday, Asian markets ended sharply lower while shares in Europe opened in the red. Wall Street rose marginally in early trading.
Emaar Properties lost 5.97 per cent, leading the fall in Dubai. The capital's largest developer Aldar Properties shed 3.77 per cent, while competitor Sorouh Real Estate fell 2.38 per cent.
Abu Dhabi-listed First Gulf Bank lost 4.50 per cent to close at Dh14.85, while National Bank of Abu Dhabi slipped 2.16 per cent to Dh9.98
UAE markets will continue to underperform as local banks' loan-to-deposit ratios remain a challenge, Khan said.
There are limited opportunities in the UAE's real estate sector, while lack of clarity on banks' exposure to Dubai World debt restructuring continues, he said.
