Local equity markets post losses

DUBAI-SEPTEMBER 9,2008 - EMAAR signage in Dubai Marina. ( Paulo Vecina/The National ) *** Local Caption *** PV Emaar6.JPGPV Emaar6.JPG

The Gulf equity markets posted losses across the board yesterday, tracking sharp declines in oil prices and the drop in global stocks over the weekend. Analysts say the worries over the possible impact of euro-zone debt troubles on the global economic recovery and the euro's consistent slide against the US dollar is also dampening investor sentiment. The Dubai Financial Market General Index closed 1.5 per cent lower at 1692.40, slipping below the key technical support level of 1,700.

Emaar Properties declined 2.1 per cent to Dh3.75, while Emirates NBD fell 3.3 per cent to Dh2.90. Arabtec Holding retreated 2.1 per cent and the logistics company Aramex dropped 1.9 per cent, to Dh2.36 and Dh1.90, respectively. The market performance "has everything to do with what's happening with the euro-zone crisis and the impact on international markets, whether that's in Asia or the US, and oil declining," said Fadi al Said, the senior fund manager and head of equities at ING Investment Management in Dubai.

"It's more gloomy, negative sentiment and risk aversion," he said. Light sweet crude oil for June delivery settled at US$71.61 a barrel on the New York Mercantile Exchange on Friday. The Abu Dhabi Securities Exchange General Index retreated 0.6 per cent to 2,787.06, with property stocks leading the declines. Aldar Properties ended 3.8 per cent lower and Sorouh Real Estate declined 2.6 per cent, to Dh3.77 and Dh2.23, respectively.

The Qatar index ended 1.8 per cent down and Bahrain shares closed 0.9 per cent lower. Muscat lost 0.8 per cent and Kuwait 0.6 per cent. The Saudi Tadawul All-Share index fell 0.19 per cent to 6,526.45. [e-mail] [e-mail]