A currency dealer works in front of electronic boards showing the Korea Composite Stock Price Index and the exchange rate between the Chinese yuan and South Korean won, at a dealing room of a bank in Seoul, South Korea, on August 12, 2015. Kim Hong-Ji / Reuters
A currency dealer works in front of electronic boards showing the Korea Composite Stock Price Index and the exchange rate between the Chinese yuan and South Korean won, at a dealing room of a bank in Show more

Global stock market rout felt in UAE



UAE equities fell amid a global stock market rout sparked by China’s devaluation of the yuan for the second day in a row.

Markets fell from Germany to Singapore amid fears the devaluation and ensuing currency volatility will hit global growth.

The FTSE 100 fell 1.7 per cent, while Germany’s DAX lost 3.2 per cent in late trading.

MSCI’s index of Asia-Pacific shares outside Japan declined 1.1 per cent, as stocks from China to Singapore fell on news of China’s surprise devaluation. The reverberations of the fall in global markets was felt in the Arabian Gulf region, with all markets except Bahrain slipping. Saudi Arabia’s main index closed down 0.5 per cent.

“What we are seeing today is definitely a contagion effect from what is happening on the global scene, and basically global emerging markets are under severe pressure after the devaluation announced by China,” said Rami Sidani, the head of Middle East and North Africa Equities at Schroder Investment Management in Dubai.

“This could trigger a currency war or at least a deflationary move by the largest consumer of commodities and minerals within the emerging markets world. As a result it has put substantial pressure on emerging markets and global markets.”

The Dubai Financial Market General Index fell 1.2 per cent to 4,022.12, led by construction and real estate stocks.

Drake & Scull lost 3.7 per cent to Dh0.724 after the Dubai-based contractor posted a 76 per cent year-on-year drop in net profit for the second quarter owing to project delays and cost overruns. Dubai Parks and Resorts dropped 2.3 per cent to Dh1.24 after the company reported a second-quarter loss of Dh29 million.

Disappointing results from construction and real estate companies such as Drake and Union Properties are also creating negative sentiment in the market, according to Fathi Ben Grira, the chief executive of Menacorp, an Abu Dhabi-based investment bank.

“You can be influenced by international factors such as the markets in Asia, but at the end of the day what investors are looking at are the companies listed in these [local] markets,” said Mr Grira.

dalsaadi@thenational.ae

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1997: Amazon goes public at $18 a share, which has grown about 1,000 per cent at present. Its highest closing price was $197.85 on June 27, 2024

1998: Amazon acquires IMDb, its first major acquisition. It also starts selling CDs and DVDs

2000: Amazon Marketplace opens, allowing people to sell items on the website

2002: Amazon forms what would become Amazon Web Services, opening the Amazon.com platform to all developers. The cloud unit would follow in 2006

2003: Amazon turns in an annual profit of $75 million, the first time it ended a year in the black

2005: Amazon Prime is introduced, its first-ever subscription service that offered US customers free two-day shipping for $79 a year

2006: Amazon Unbox is unveiled, the company's video service that would later morph into Amazon Instant Video and, ultimately, Amazon Video

2007: Amazon's first hardware product, the Kindle e-reader, is introduced; the Fire TV and Fire Phone would come in 2014. Grocery service Amazon Fresh is also started

2009: Amazon introduces Amazon Basics, its in-house label for a variety of products

2010: The foundations for Amazon Studios were laid. Its first original streaming content debuted in 2013

2011: The Amazon Appstore for Google's Android is launched. It is still unavailable on Apple's iOS

2014: The Amazon Echo is launched, a speaker that acts as a personal digital assistant powered by Alexa

2017: Amazon acquires Whole Foods for $13.7 billion, its biggest acquisition

2018: Amazon's market cap briefly crosses the $1 trillion mark, making it, at the time, only the third company to achieve that milestone

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