Business | Markets
Uncertainty batters Dubai shares
Dubai shares dropped sharply as investors sentiments were affected by a lack of clarity on the Amlak-Tamweel merger and the news that the three big real estate companies of Dubai are in talks about pulling back property supply.
- By Gaurav Ghose, Financial Features Editor
- Published: 23:35 November 24, 2008
Dubai: Dubai shares dropped sharply as investors sentiments were affected by a lack of clarity on the Amlak-Tamweel merger and the news that the three big real estate companies of Dubai are in talks about pulling back property supply.
The Dubai Financial Market General Index fell 5.33 per cent to 1,814.90 led by real estate and banking stocks. Emaar Properties fell close to 10 per cent to end at Dh2.47.
Deyaar Development slid 9.86 per cent to Dh0.64. Union Properties shed 5.94 per cent to Dh0.95
Emirates NBD and Dubai Islamic Bank fell five per cent and 6.12 per cent respectively.
Amlak Finance and Tamweel's trading has been suspended.
"Its not clear what happens to the shareholders holding Amlak and holding Tamweel, said Mousa Haddad, head of trade, discretionary mandate, National Bank of Abu Dhabi. "Will shares of Tamweel go down and Amlak go up or is it going to go the other way around? Nothing is clear. And there is a question mark over Emaar."
Emaar Chairman and head of Dubai committee studying the impact of the global crisis on its economy, Mohammad Ali Al Aabar, however, at the DIFC conference said that the details are being worked and will be announced shortly.
He also said that in the light of a "healthy correction" in the property sector, it is time for the three big developers - Emaar, Nakheel and Dubai Holding, which has a number of real estate companies under it - to unite and collaborate to ensure that new supply is properly managed and demand is adequately met.
However, the Dubai Advisory Council said in an emailed statement that there are no merger plans between Nakheel and Emaar.
The Abu Dhabi Securities Exchange Index fell 3.44 per cent to 2,701.65.
Energy stocks fell most, with Dana Gas, Abu Dhabi National Energy and Aabar Investments, all losing more than eight per cent.
Real estate stocks Aldar Properties, Sorouh Real Estate and Rak Properties fell 2.61 per cent, 4.56 per cent and 7.46 per cent respectively.
Elsewhere in the Gulf, the Saudi stock market surged. The Tadawul All-Shares Index gained 6.2 perc ent to close at 4,529.19 points, following two days of massive losses, on reports that some funds run by government institutions began buying shares.
The Kuwait Stock Exchange dropped 1.9 per cent to 8,644.10 points as investors waited for details about a multi-billion-dollar government fund created to buy stocks.
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