Dubai: Major stock markets in Asia continued to crash on Tuesday as investors feared a US recession could derail global economic growth.
Across the Gulf, stock benchmarks plunged in the region's biggest slide since a crash in 2006.
Dubai led the plunge as the DFM index dropped by 9.44 per cent at one point although by 1pm it had rallied to be 5.82 per cent down.
With an hour to go before the 2pm close, Abu Dhabi's ADSM index was 6.8 per cent down.
Across the Gulf region, Oman's stock market crashed 7.8 per cent, while Qatar's stock market fell 6.3 per cent in morning trading.
Saudi Arabia's stock market tumbled 9.38 per cent, with the index sliding to 9,368.37 points, its lowest since November 28. The benchmark's biggest single-day drop was on July 15, 2006, when it tumbled 9.36 per cent.
"This is almost mayhem," said Shakeel Sarwar, head of asset management at Bahrain-based Sico investment bank. "We didn't even see this in the crash of 2006."
Tens of billions of dirhams have been wiped off the value of shares in Dubai in the past three days, with combined falls of more than 10 per cent since Sunday.
Across Asia, share markets from Tokyo to Sydney slumped by 5 to 7 per cent, with India's benchmark Sensex crashing more than 11 per cent, triggering a trading halt.
Earlier on Tuesday, Japan's Nikkei index closed down 5.7 per cent, while Hong Kong's Hang Seng ended the session more than eight per cent down. The Shanghai Composite Index dropped by 7.2 per cent.
Billionaire investor George Soros said the world was facing its worst financial crisis. "We really do have a serious financial crisis now," Soros told Austrian daily Standard.
India's Finance Minister P Chidambaram has urged Indian investors to "remain calm" and advised them to "stay invested".
"Enough liquidity will be provided to the brokers to tide over the present crisis," he said.
Your comments
It is not a surprise that UAE and GCC stockmarkets are following the international financial crisis. High leveraged portfolios and manifold concentrated investments in the RE sector has put local stock exchanges at risk. Diversification in industries and sectors but also to look closer to alternatives such as commodities or currency diversification will benefit the investor long term. And one should never forget - buying is easy, but selling is hard.
Raphael
Ras Al Khaimah,UAE
Posted: January 22, 2008, 12:17
Oooowwwwaaaaaaa!! :(
Salman
Dubai,UAE
Posted: January 22, 2008, 11:59
I think, It's probably a good time to invest in stock market.
Hiten
Sharjah,UAE
Posted: January 22, 2008, 11:55
