The ripples from China's decision to restrict new lending reached the Gulf yesterday, as regional markets dropped across the board. The news was not a surprise but raised concerns that growth would slow in the world's third-largest economy. "Since the Chinese banks have made it official, investors have used it as a catalyst to create an inflection point in the market," said Saud Masud, the head of research at UBS.
The Dubai Financial Market General Index closed 3.67 per cent lower. Arabtec Holding, the country's biggest builder, fell 7 per cent, while Emaar Properties, the largest listed developer in the region, closed down 7.9 per cent. Trading in Union Properties was suspended after it dropped more than 10 per cent in response to a negative report from Credit Suisse. It closed at 54 fils. The Abu Dhabi Securities Exchange General Index dropped 0.4 per cent. Aldar Properties declined 5.6 per cent, while Sorouh Real Estate lost 4.7 per cent and RAK Properties closed 1.9 per cent lower.
Elsewhere in the region, Kuwait's main measure declined 0.2 per cent, Oman closed 0.5 per cent down and Bahrain lost 0.2 per cent. The Saudi Tadawul All Shares Index declined 0.1 per cent, Mr Masud said the markets' reaction to the announcement from China was yet another indication that traders were wary of any bad news "when visibility is so low". @Email:halsayegh@thenational.ae
