Dubai market rout continues, longest selloff for two years

The benchmark DFM General Index slumped 4.1 per cent to 4,655.71 yesterday, taking its five-day drop to 13 per cent.

Dubai’s stock index fell for a fifth day in the longest sell-off since June 2012.

The rout is failing to deter Schroders and Shuaa Asset Management from seeking further gains in the world’s best-performing stock market.

The benchmark DFM General Index slumped 4.1 per cent to 4,655.71 yesterday, taking its five-day drop to 13 per cent. The measure has declined since MSCI last week said which Dubai companies it would include in its emerging markets gauge from next month. Stocks on Dubai’s index, the world’s third most-volatile, traded at a peak of 19.1 times projected 12-month earnings last week, a 77 per cent premium to developing nation peers.

“Bigger names, with Emaar Properties on top of the list, actually offer value,” said Rami Sidani, who oversees the US$343 million Schroders International Selection Fund. “The smaller caps need to correct because they have reached the bubble territory.”

Amer Khan, the senior executive officer at Shuaa Asset Management in Dubai, said: “We expect the market to be volatile, but there isn’t anything indicative of a broader trend just yet.”

“If you are looking at investing in the UAE in the long haul, then it’s absolutely going to open up a buying opportunity,” he said.

business@thenational.ae

Follow us on Twitter @Ind_Insights

Published: May 21, 2014 04:00 AM

SHARE

Most Read