Dubai shares slumped yesterday, the lowest close since July 7, as concerns of US strike against Syria continued to weigh on investors’ minds.
The DFM General Index lost 1.97 per cent to close at 2324.54, taking its decline to 7.9 per cent this month. The Abu Dhabi benchmark ADX General Index retreated 1.40 per cent to 3479.13.
The US stepped up its diplomatic effort to garner international support for an offensive against Syria, leaving the door open for a new UN vote.
“It is continuation of the same concerns on the Syrian situation,” said Saleem Khokhar, head of equities at national Bank of Abu Dhabi. “It is very much going to be this way for a little while until we get to see the extent of the strikes and the possible retaliation, if there is going to be a strike.”
The DFM Index was the second biggest decliner in the world yesterday and is up 43 per cent for the year. Until late last month, before the US and the West discussed options of striking Syria, the index had gained more than 65 per cent, making it one of the best performing equity markets in the world. Emirates NBD fell 5.59 per cent, the most in two weeks, to Dh4.90, one of the top losers on the day. Others which slid were Air Arabia, down 2.46 per cent to Dh1.19; Arabtec 2.29 per cent to Dh2.13; Emaar Properties 0.93 per cent to Dh5.30; Dubai Financial Market 4.40 per cent to Dh1.52 and Tamweel, which closed 4.84 per cent lower to Dh1.18.
In Abu Dhabi, First Gulf Bank fell to a three month low, retreating 2.01 per cent to Dh14.60. National Bank of Abu Dhabi shares dropped 2.94 per cent to Dh11.55 and Aldar Properties slipped 1.79 per cent to Dh2.20.
“I am presuming there will be a strike, given the language coming out of the US and so, until we get a clearer picture on what’s going on, you are going to see volatility based on news flow,” said Khokhar. ‘You’ve just to wait and watch.”
