Dubai stocks fell to a one-month low after most Gulf markets opened for the first time since a global sell-off last Friday, triggered by Barack Obama, the US president, and his bid to curb the financial risk-taking of banks in his country.
The Dubai Financial Market General Index fell 5 per cent yesterday, the biggest drop among Gulf exchanges. That took its overall decline to 13 per cent since the start of the year.
Emaar Properties, the region's largest listed developer, declined 9.7 per cent to Dh2.97, its lowest in six weeks. Other property companies also recorded declines yesterday, with Union Properties and Deyaar Properties both falling by more than 7 per cent.
Shuaa Capital, the UAE's largest investment bank, retreated 8.7 per cent while Arabtec, the country's biggest builder, lost 8.1 per cent.
"Declines were expected today as there is a strong correlation between global equities and regional markets," said Wadah al Taha, a market analyst in Dubai. "In the absence of a local stimulant, I expect the markets to go down further."
The decline in Gulf markets comes ahead of several earnings releases and trading updates expected this week from major corporations.
"We are expecting Emaar to release earnings on Thursday. If they come out with a good report, we will probably see an uptrend in the next week," Mr al Taha said.
The Abu Dhabi Securities Exchange General Index retreated 1.4 per cent to a six-week low as the market fell for the fourth consecutive session.
Arkan Building Materials was the major loser of the day falling 9.4 per cent to Dh2.11. Aldar Properties retreated 7 per cent while Sorouh closed 6.6 per cent lower. RAK Properties, the third-largest Abu Dhabi-listed developer, ended the day 5.7 per cent lower.
"The volumes were low and the sentiment was generally down last week and we expect the same trend to continue this week," said Ayman el Saheb, the head of operations at Darahem Financial Brokerage in Dubai.
Elsewhere in the region, Qatar's main measure declined 1.6 per cent, the Kuwait index declined 0.5 per cent, while the Muscat and Bahrain markets closed 0.6 per cent and 0.4 per cent lower, respectively.
Saudi Arabia's Tadawul, the region's largest exchange, gained 0.1 per cent after falling 1.4 per cent on Saturday when banking and petrochemical stocks took a battering from Friday's slump on Wall Street.
The Standard & Poor's 500 Index on Friday lost the most since October on Mr Obama's plan to curtail the activities of banks.
Beshr Bakheet, the chief executive of equities trading and investment at Bakheet Investment Group, said the recovery of regional markets would be closely linked to the health of US equities.
"When it rains in the US, we have to open umbrellas here," Mr Bakheet said.
@Email:skhan@thenational.ae
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
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UAE currency: the story behind the money in your pockets
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
More from Neighbourhood Watch
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Day 5, Dubai Test: At a glance
Moment of the day Given the problems Sri Lanka have had in recent times, it was apt the winning catch was taken by Dinesh Chandimal. He is one of seven different captains Sri Lanka have had in just the past two years. He leads in understated fashion, but by example. His century in the first innings of this series set the shock win in motion.
Stat of the day This was the ninth Test Pakistan have lost in their past 11 matches, a run that started when they lost the final match of their three-Test series against West Indies in Sharjah last year. They have not drawn a match in almost two years and 19 matches, since they were held by England at the Zayed Cricket Stadium in Abu Dhabi in 2015.
The verdict Mickey Arthur basically acknowledged he had erred by basing Pakistan’s gameplan around three seam bowlers and asking for pitches with plenty of grass in Abu Dhabi and Sharjah. Why would Pakistan want to change the method that has treated them so well on these grounds in the past 10 years? It is unlikely Misbah-ul-Haq would have made the same mistake.
