Dubai stocks dip amid unease

Dubai stocks slumped yesterday as oil prices dropped on global growth concern.

Emaar Properties lost 1.4 per cent a share. Duncan Chard for the National

Dubai shares fell by the most in a week on lower oil prices amid concerns of a faltering global economy.

Emaar Properties, the company that built the Burj Khalifa, lost 1.4 per cent to Dh2.77 a share on the Dubai Financial Market (DFM).

Gulf Navigation, a shipping and maritime services company, slumped 6.6 per cent to 28 fils a share.

The DFM General Index dropped 1 per cent to 1453.45 points, the most since August 9.

Morgan Stanley cut its forecasts last week for global growth this year, saying the US and Europe were "dangerously close to recession". Crude prices fell 3.7 per cent to US$82.26 a barrel last week in New York, capping an 18 per cent drop since July 22.

"There are fears of building positions in the markets and at the same time there are no buyers, no one is willing to take risk at the current time in preparation for further downside in international markets and the economy," said Marwan Shurrab, the chief trader at Gulfmena Invesments in Dubai.

In the capital, Dana Gas was down 1.8 per cent to 54 fils a share. The Abu Dhabi Securities Exchange General Index dropped 1 per cent to 2555.86 points.

Elsewhere in the region: Kuwait's measure sank 1 per cent to 5764; Bahrain's index was down 0.1 per cent to 1259.80; Oman's measure lost 0.6 per cent to 5492.29; and Qatar's index lost 1.1 per cent to 8097.63. The Saudi Tadawul All-Share Index was down 0.25 per cent to 5916.31.