Investors defy global positives
Regional investors reverted to selling mode yesterday, bucking the trend in other global markets. "After yesterday's non-reaction to global positive sentiment, it was taken as a sell signal for most people," said Saad Chalabi, an institutional trader at AlRamz Securities in Abu Dhabi. The Dubai Financial Market General Index dipped below 1,500 briefly and the bellwether Emaar Properties reached a new low of Dh3.08 since the March rally.
"This is further confirmation for the bears that markets will be heading lower," Mr Chalabi said. In addition, Moody's Investors Service on Monday published an outlook pointing to debt issues on the horizon for Dubai entities and UAE banks. But Mr Chalabi said markets had already priced in the information. Dubai's main measure dropped 1.3 per cent to 1,502.69, while the Abu Dhabi Securities Exchange General Index closed 0.6 per cent lower at 2,510.69.
The property sector accounted for the highest volumes in Dubai. Union Properties fell the most, declining 3.1 per cent to 37 fils. In Abu Dhabi, RAK Properties lost 2.5 per cent to 38 fils. Because Union Properties and RAK Properties are trading below 40 fils, the Securities and Commodities Authority has the right to suspend trading in the shares, although it has not indicated whether it plans to do so.
Elsewhere in the region, Kuwait's measure dropped 0.3 per cent to 6,528.60 and Qatar's index fell 0.6 per cent to 6,981.79. Muscat's main measure was up 0.07 per cent to 6,100.12, while Bahrain's index fell 0.8 per cent to 1,392.32. The Saudi Tadawul All-Share Index lost 0.2 per cent to 6,323.95. @Email:firstname.lastname@example.org
Published: June 15, 2010 04:00 AM