UAE stocks fall heavily to erase Dh26.4b in market capitalisation

Abu Dhabi: UAE stock markets retreated to levels recorded at the end of last year, losing more than Dh26.4 billion in market capitalisation.

The total losses in terms of the market value of the listed shares exceeded Dh50 billion in three consecutive sessions, and the Emirates Securities general index plunged 3.09 per cent to 6,037.41, less than a notch above its value on January 1, 2008.

In Dubai, Emaar Properties fell below the Dh14 mark, losing 3.8 per cent to close at Dh13.95, followed by its financial affiliate, Amlak Finance, which plunged 3.64 per cent to Dh5.03.

Many analysts blame the downtrend on foreigners abandoning their holdings to cover up for losses in major international markets.

"When major markets crash, major foreign assets managers tend to defend against any degradation through liquidating holdings in less weighted markets in their portfolios," said Khalid Abdul Rahman, general manager of Abu Dhabi Financial Services.

The majority of the listed companies are yet to disclose their respective 2007 figures, a fact that maintains a positive outlook for the markets.

In Abu Dhabi, the general index declined 3.12 per cent to 4,691.76, with the energy, banking and real estate sectors incurring substantial losses. In the banking sector, the National Bank of Abu Dhabi nosedived 5.54 per cent to Dh23.85, while the energy sector totally reversed course, in tandem with a relative retreat in international oil prices.