News of Greek referendum continues to rattle markets

Markets Wrap: Local markets declined for a second day yesterday on Europe fears after Greece's Prime Minister surprised financial markets by his decision to hold a referendum on the country's latest bailout.

Shares in Emaar Properties slipped 1.1 per cent to Dh2.67 in trading on the Dubai Financial Market yesterday. Jeff Topping / The National

Dubai's shares declined for a second day over fears that Greece's decision to hold a referendum on its latest bailout increases the risk of contagion to other euro-zone countries.

Emaar Properties declined 1.1 per cent to Dh2.67 on the Dubai Financial Market (DFM) General Index. Aramex, the region's largest courier, lost 1.6 per cent to close at Dh1.76.

The DFM General Index fell 0.3 per cent to 1,377.48. During the trading session, the benchmark lost as much as 1.8 per cent, its biggest decline in a week.

The surprise decision on Tuesday by George Papandreou, the Greek prime minister, to hold a referendum on the latest aid package for Greece came as investors in the UAE were anticipating strong third-quarter results from local companies.

"It is so disappointing. Our markets have been waiting for almost a whole month for a clean break from international markets," said Marwan Shurrab, the chief trader at Gulfmena Investments in Dubai.

"The markets had a short rebound, expectations began to become bullish, earnings releases showed a recovery, and then this happens," he said.

The Abu Dhabi Securities Exchange General Index fell 0.2 per cent to 2,490.17.

Elsewhere in the region, Kuwait's measure was little changed at 5,916.80, Bahrain's added 0.1 per cent to close at 1,148.12, Oman's MSM Index slipped 0.4 per cent to 5,556.05, and Qatar's QE Index rose 0.5 per cent to 8,579.97.

The Saudi Tadawul All-Share Index was up 0.9 per cent to 6,215.67.