Dubai shares get steady after plunging at the open

Dubai: Dubai shares steadied on Sunday afternoon after plunging more than five per cent at the open, as local investors joined the global equity sell off amid mounting concern over the twin debt crises in the United States and Europe. 

The Dubai Financial Market General Index entered a so-called correction, slumping 5.1 per cent to 1,461.59 at 10.40am UAE time, its largest intraday drop in 2011, and a fall of 13 per cent from this year's high of 1,681.93 on April 21. 

However, the bourse recouped some of this morning's losses and was down 3.58 per cent to 1,485.99 at 12.10pm UAE time. In the capital, the Abu Dhabi Securities Exchange was down 2.65 per cent to 2,600.10, its lowest intraday level since May 26. 

The sell-off comes after the ratings agency Standard & Poor's downgraded the US credit rating for the first time since 1941, lowering it one level to AA+ with a negative outlook. 

There are also mounting fears that the Eurozone's sovereign debt crisis will spread to heavyweights Spain and Italy following bailouts of Greece, Ireland and Portugal. 

Elsewhere in the Gulf, Saudi Arabia's Tadawul All Share Index was up 0.57 per cent at 12.10pm UAE time, Qatar's measure was down 2.8 per cent, Bahrain's bourse was little changed, Kuwait's gauge had tumbled 2.25 per cent and Muscat's exchange was trading down 1.9 per cent.