By Nadia Saleem, Staff Reporter
Published 00:00 1 December 2009
Abu Dhabi declines 8.2% while Dubai slides 7.3%
Dubai: The UAE markets lost more than Dh33 billion in market capitalisation when they reopened after the Eid Al Adha holidays yesterday.
Abu Dhabi's index dropped 8.2 per cent, the largest one-day decline in the market's history, and Dubai's bourse lost 7.3 per cent, its biggest one-day fall since October last year.
Dubai market capitalisation is valued at Dh224 billion after it lost more than Dh10 billion in yesterday's trading.
"Unfortunately, people are jumping to conclusions. Nobody has said Dubai will be defaulting," Haissam Arabi, chief executive at Gulfmena Alternative Investments, said.
Low trading volumes indicate lack of buying sentiment, which is expected to continue until some positive news hits the markets, he added.
World stock markets steadied yesterday, particularly in Asia where the bourses rebounded sharply after the UAE Central Bank's pledge to stand behind local and foreign banks and offered extra liquidity.
Oil prices also picked up with Brent North Sea crude for January delivery gaining 36 cents to $77.54 a barrel in afternoon London trading.