UAE shares still sinking

Equities markets in the UAE continued their losing streak yesterday, closing lower for the third consecutive session as losses in banking and telecommunications weighed heavily. The Dubai Financial Market General Index ended 0.1 per cent lower at 1,744.40. Emirates NBD, the largest lender by assets in the country, dipped 2 per cent. Meanwhile, du, the country's second largest telecoms operator, continued to decline, ending trade down 4.8 per cent after the company announced on Monday it was seeking shareholder approval to raise Dh1 billion by issuing new shares.

Emaar Properties' 1.6 per cent rise yesterday helped the index to trim its losses. "It's mainly losses in Emirates NBD and du that have eroded gains earlier in the day," said Hassan Awan, an associate with the asset management division of The National Investors in Abu Dhabi. Mr Awan added that volumes remained depressed and the market seemed to be waiting for the earnings season to unfold further.

The Abu Dhabi Securities Exchange General Index retreated 0.2 per cent to 2,805.35. Abu Dhabi Commercial Bank and First Gulf Bank declined 3.1 and 2.1 per cent, respectively, while Union National Bank retreated 2.8 per cent. Abu Dhabi Islamic Bank bucked the trend, rising 1.3 per cent, while Etisalat ended up 1 per cent. Elsewhere in the region, markets closed mixed after heavy selling in the last two sessions.

The Saudi Tadawul All Share Index declined the most, down 2 per cent, followed by Kuwait, which dropped 1.4 per cent. Bahrain's shares ended 0.9 per cent lower. The main indexes in Qatar and Muscat rose 0.7 and 0.3 per cent, respectively. @Email:[e-mail]