Local investors still cautious

Market Wrap: Local markets were flat on lacklustre trading after Morgan Stanley cut forecasts for global growth, citing "recent policy errors" in the United States and Europe, plus prospects of further fiscal tightening in 2012.

Morgan Stanley has cut forecasts for global growth. Reuters

UAE investors remained wary yesterday after Morgan Stanley cut forecasts for global growth, citing "recent policy errors" in the US and Europe, plus prospects of further fiscal tightening next year.

Deutsche Bank cut its projection for Chinese GDP growth to 8.9 per cent this year from 9.1 per cent and to 8.3 per cent next year from 8.6 per cent, largely reflecting a downgrade in export outlook due to slower growth in the US and Europe.

The Dubai Financial Market General Index was up 0.08 per cent to 1468.34 points.

Arabtec Holding was up 0.7 per cent to Dh1.38 a share.

Dubai Financial Market Company, the only regional bourse to sell shares to the public, was up 0.8 per cent to Dh1.13. The Abu Dhabi Securities Exchange General Index was down 0.06 per cent to 2583.55 points.

Aldar Properties rose 0.8 per cent to Dh1.19 a share and Arkan Building Materials was up 0.8 per cent to Dh1.21. Sharjah Islamic Bank was up 4.6 per cent to 90 fils.

"There is no liquidity," said Mohammed Ali Yasin, the chief investment officer at CAPM Investment in Abu Dhabi.

Elsewhere in the region: Kuwait's index was down 0.1 per cent to 5826.80 points; Bahrain's measure lost 0.4 per cent to 1261.21; and Oman's benchmark closed 0.7 per cent higher at 5527.09.

The Saudi Tadawul All-Share Index was closed.