Local investors join the global equity sell off
In the capital, the Abu Dhabi Securities Exchange was down 2.45 per cent to 2,605.29, its lowest since May 26
Dubai: Dubai shares dropped more than five per cent at the open on Sunday morning, 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 this year and a fall of 13 per cent from this year's high of 1,681.93 on April 21.
In the capital, the Abu Dhabi Securities Exchange was down 2.45 per cent to 2,605.29, its lowest 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.
