Markets follow Wall Street

DUBAI // Markets across the Gulf retreated yesterday as investors reacted to an overnight slump on Wall Street and weakening oil prices. The Dubai Financial Market (DFM) led the losers again, sliding down 1.48 per cent to 1,652.26 on slim volumes. Of 27 traded equities, 20 retreated, three remained unchanged and only four advanced moderately. The blue-chip Emaar Properties closed down 2.7 per cent, du dropped 1.7 per cent while the DFM and Arabtec declined 2.5 and 2.1 per cent respectively.

"Wednesday was a bad day for the US markets and investors [followed suit] ahead of the weekend, on the worries international markets can extend losses," said Chahir Hosni, the equity sales manager at EFG-Hermes in Dubai. "Generally speaking it was a bad week here and the picture elsewhere is not looking good." The Abu Dhabi Securities Exchange General Index declined 0.6 per cent to 2,636.73. Property stocks weighed heavy on the index. Aldar Properties declined 3.7 per cent followed by Sorouh Real Estate, down 3.6 per cent.

The Dubai and Abu Dhabi indexes are the worst performing GCC bourses so far this year. "Volumes are consistently on the decline in absence of a catalyst, which is a worry at the moment," Mr Hosni said. Late buying in Kuwait helped its main measure to recover from early losses. The index declined 0.5 per cent, followed by Qatar down 0.3 per cent. Bahrain was the only exception, rising 1 per cent. The Saudi Tadawul was closed for the weekend yesterday.

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