Dubai shares declined for a second day – extending losses from last year – as brokers fretted that volatility was keeping investors away from the market.
“I think we’re going to continue [to see] another wave of sell-offs,” said Nabil Al Rantisi, the managing director of brokerage at Menacorp in Abu Dhabi. “It’s not over yet. Some people lost interest in the market, and as long as it stays volatile like this, you won’t see money flowing in.”
Arabtec, Dubai’s biggest contracting company, lost 3.5 per cent to Dh2.72 for a share. Emaar Properties, the biggest developer in the region, declined 3.2 per cent to Dh6.90 for a share. Dubai Investment tumbled 6.5 per cent to Dh2.14 per share.
The Dubai Financial Market General Index closed 3.3 per cent down at 3,565.56 points.
Traded value rose to Dh508 million from Dh311m on Sunday. It, however, was still low compared to the 50-day average of Dh1.06 billion.
Property stocks dragged Abu Dhabi’s equity index lower. Aldar Properties fell 3.6 per cent to Dh2.39 a share. Eshraq Properties lost 1.2 per cent to 77 fils, while RAK Properties slipped 1.3 per cent to 71 fils. The Abu Dhabi Securities Exchange General Index closed 0.4 per cent lower at 4,429,79 points.
Oil declined, extending losses from last year. Brent crude for February settlement lost 1.5 per cent to US$56.42 a barrel in London at 2.30pm UAE time.
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