Dubai index tumbles, leads decline in Gulf region

Dubai: The Dubai index led the decline in the Gulf region on Sunday, falling to its lowest level in three months following a sell off in the global markets.

The Dubai Financial Market General Index declined 6.54 per cent to end the session at 4,619.60, after hitting a low of 4,592.74, a level last seen in early July. “A lot panic selling came up. This was due to global sell off and falling crude oil prices and geo-politcal tensions,” said Mousa Haddad, fund manager at National Bank of Abu Dhabi Asset Management, which oversees a portfolio of Dh7 billion.

The Dubai index fell the most in intra-day trade registering 7.08 per cent decline, followed by a 6.7 per cent fall on Saudi’s Tadawul All Share Index.

Global stock markets declined last week in a wide-spread sell off prompted by fears of a global economic slowdown. The International Monetary Fund last week reduced its forecast for global growth next year to 3.8 per cent, from a July prediction of 4 per cent.

The decline in Dubai’s index was led by Emaar Properties and Arabtec. Emaar Properties, which approved a Dh9 billion dividend to its shareholders on Saturday, fell 7.42 per cent to end at Dh10.60. Arabtec ended 10 per cent lower at Dh4.05.