Dubai bourse hits 14-month low

Debt-related concerns fuel fears that the worst may not be over

Emaar Properties fell 5.9 per cent.

The Dubai bourse dipped to a 14-month low as more debt-related woes sparked fears that the worst is not yet over for the emirate's economy. The Dubai Financial Market General Index fell 3 per cent to 1,531.15, its lowest since March last year. "Given the poor sentiment weighing on UAE markets, the announcement of a Dh23.56bn loss for Dubai Holding certainly does not help," said Lee Yong-wei, a senior fund manager at Emirates NBD, based in Dubai. Mr Lee said bank and property stocks had borne the brunt of the sell-off.

Emaar Properties, the bourse bellwether and developer of the world's tallest building, fell 5.9 per cent to Dh3.15. Deyaar Development dropped 7.4 per cent to 31 fils and Union Properties lost 6.5 per cent to 37 fils. Emirates NBD, the UAE's biggest bank by assets, fell 3.6 per cent to Dh2.65. The Abu Dhabi Securities Exchange General Index fell 1.9 per cent to 2,552.99, its ninth straight day of decline.

Aldar Properties, Abu Dhabi's largest listed developer, fell 3.7 per cent to Dh3.06, while Sorouh Real Estate dropped 2.3 per cent to Dh2.05. Abu Dhabi Commercial Bank fell 2.9 per cent to Dh1.63 and National Bank of Abu Dhabi slipped 2.1 per cent to Dh9.98. Elsewhere in the region, Kuwait's measure inched up 0.06 per cent to 6,704; Qatar's QE Index gained 0.6 per cent to 6,832.70; Muscat's index fell 1.3 per cent to 6,210.11; and Bahrain's gauge dropped 1.9 per cent to 1,421.44.

The Saudi Tadawul All-Share Index lost 2.2 per cent to 5,983.52. [e-mail]