Stock plunge wipes off Dh26.4b from markets

Abu Dhabi: UAE stocks fell sharply on Sunday, wiping out all the gains of this month, and more than Dh26.4 billion in market value.

The Dubai Financial Market general index fell 3.17 per cent to 5,868.35 after staying above the 6,000 mark since the start of the year. All leading shares declined by an average of 4 per cent, including Emaar Properties which dropped 3.8 per cent to Dh13.95.

Abu Dhabi's benchmark retreated at a similar pace, falling 3.12 per cent to 4,691.76, down from highs exceeding 4,800.

"What occurred is unjustifiable panic selling, as the strong fundamentals for the markets remain intact, given that many results are still yet to come," said Khalid Abdul Rahman, general manager of Abu Dhabi Financial Services, the trading affiliate of the National Bank of Abu Dhabi.

"When international markets crash, major asset managers tend to sell holdings at lesser weighted markets to cover up for any degradation," he added.

Overall, the Emirates Securities general index retreated 3.09 per cent to 6,037.41. About Dh3.3 billion worth of shares changed hands, the lowest since the extended traded hours began.