UAE markets fall on negative global sentiments

Abu Dhabi: The UAE markets on Sunday fell amid a volatile trading session in line with nervousness gripping the international markets which fear Greece will default on its sovereign debt obligations and exit the Euro zone.

Analysts say, a disorderly default by Greece would almost certainly start a run on the sovereign bonds and bank deposits of other heavily indebted countries in the Euro zone such as Portugal, Ireland, Spain and Italy. Global bourses are widely expected to trade lower until Greece elects a new government. The parliamentary polls in Greece take place on June 17.

The Dubai Financial Market (DFM) index fell 2.02 per cent, closing at 1,441.80. In Abu Dhabi, the general index closed 0.6 per cent lower at 2,426.38.

A sharp decline in international oil prices have also contributed to the bearish sentiments on the regional markets. Brent crude prices last week fell below the psychological level of $100 a barrel as data showed growth in the world's largest economy - the US is slowing down and Asia's growth engine China is slowing as well.

The day saw low volumes of shares being traded on the UAE markets. In Dubai, 124.12 million shares worth Dh134.12 million were traded, the decline being led by real estate major Emaar whose stock fell 4.12 per cent to Dh2.79 by close of trade. In Abu Dhabi, shares worth Dh60.08 million were traded, with Abu Dhabi Commercial Bank the main decliner. Its shares closed 4.36 per cent lower at Dh2.85. The decline on Abu Dhabi market was led by real estate and banking stocks.