Business | Markets
UAE stocks stay bearish as global markets slump
The Dubai and Abu Dhabi stock indices fell again yesterday as global markets sank, creating more negative sentiments among local investors who are expecting weak earnings in the fourth quarter.
- By Gaurav Ghose, Financial Features Editor
- Published: 23:51 January 15, 2009
Dubai: The Dubai and Abu Dhabi stock indices fell again yesterday as global markets sank, creating more negative sentiments among local investors who are expecting weak earnings in the fourth quarter.
Economic uncertainty, with crude prices moving between high 30 dollars and low 40 dollars in the past few days, is also weighing on their minds.
On Wednesday, the S&P 500 index dropped 3.4 per cent and Europe's Dow Jones Stoxx 600 index slumped 4.4 per cent.
Following the steep declines in the US and Europe, Asian markets tumbled yesterday on fresh worries about the impact of global economic downturn. Japan's Nikkei and Hong Kong's Hang Seng ended more than four per cent down.
The Dubai Financial Market General Index sank for the third straight day, closing down 3.22 per cent at 1,643.65. The decline was led by real estate, banks and financials, and telecom stocks.
The Abu Dhabi Securities Exchange Index dropped nearly 70 points or 2.84 per cent to 2,385.35.
"Any bad news adds to the prevailing negative mood," said Sharif Abdul Khalek, manager, accounts, Beltone Financial.
"The slump in US and other markets in Asia and Europe put pressure on the markets here. Nortel filed for bankruptcy in the US. Investors see no sign of stability and no one knows when the recovery will begin. Unfortunately there is more fear in their minds."
Arabtec continued to slide, losing nearly 10 per cent yesterday, taking its toll this week to 33.72 per cent. It closed at Dh1.50, down 9.64 per cent.
"The news of the Meydan project has raised question marks over other projects in the pipeline, not just for Arabtec," said Khalek.
"With government projects being cancelled, worries about the fundamentals occupy the minds of investors."
Emaar plunged 7.27 per cent to Dh2.17; Dubai Financial Market company retreated 6.30 per cent and Emirates NBD sank 4.27 per cent to Dh3.59.
Abu Dhabi's real estate and banking stocks suffered heavily with Aldar Properties, Sorouh Real Estate and National Bank of Abu Dhabi declining 9.69 per cent, 9.57 per cent and 7.61 per cent respectively. etisalat also slipped, down 1.38 per cent to Dh10.75.
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