Business | Markets
UAE stocks lose Dh16.45b reflecting global trend
UAE stocks followed the trend in international markets, plunging sharply despite leading shares posting strong corporate results in 2007.
- By Ahmed A. Elewa, Staff Reporter
- Published: 23:39 February 6, 2008
Abu Dhabi: UAE stocks followed the trend in international markets, plunging sharply despite leading shares posting strong corporate results in 2007.
The value of listed companies fell by a hefty Dh16.45 billion dragging the Emirates Securities general index down almost two per cent to 5,961.67.
The Dubai Financial Market general index dropped 2.62 per cent to 5,713.76, led by Emaar Properties which plummeted about four per cent to Dh12.10.
"This is a clear demonstration of the cattle theory, as investors had no reason to sell when the markets opened with a huge downward gap," said Mohammad Beheiri, dealings and portfolio manager at Amanah Financial Services.
"This has to end, simply because there can be a conflict of interest between local and foreign investors," he added.
All leading shares nosedived, with DFM's shares dropping five per cent to Dh5.70, Amlak Finance by 4.59 per cent to Dh4.78, and Dubai Islamic Bank by 3.48 per cent to Dh11.10.
In Abu Dhabi, the general index ended down 1.29 per cent to 4,691.12.
Real estate, banks, and energy sectors were down. Aabar Petroleum fell 3.66 per cent to Dh4.46, while the National Bank of Abu Dhabi retreated 1.45 per cent to Dh23.85.
Aldar Properties, which closed at Dh11.60 on Tuesday, closed 0.45 per cent down to Dh11. The only blue chip that was able to defy the trend was etisalat, which advanced slightly by 0.21 per cent to Dh24.
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