Emaar shares fall 10% as Dubai market suffers

SHARES FALL: Emaar Properties shares lost 10 percent in value on Tuesday. (ITP Images)

Shares in Emaar Properties dipped below three dirhams a share on Tuesday as the Dubai index finished more than five percent down.

After a rocky start, stock markets in the UAE rebounded, reversing declines earlier in the session, as bargain hunters take advantage of a slump in share prices to enter the market.

But the rollercoaster performance saw Emaar shares lose 10 percent to close the day on 2.97 dirhams a share. The index closed 5.12 percent lower at 2,033 points.

On Monday, the main index ended 8.15 percent up at 2,142 points as heavyweight Emaar Properties, which is trading at 2.47 times expected 2008 earnings, surged 14.98 percent. Emaar's shares have fallen more than 79 percent since the beginning of 2008.

In Abu Dhabi, the main index rose 1.30 percent to close the day on 2,883 points.

Saudi Basic Industries Corp plunged 9.83 percent, pulling the main index to close lower in line with a slide in global markets.

The benchmark lost 3.93 percent to end at 4,969 points.

National Bank of Oman and Oman Oil Co led Oman's main index to a higher close.

National Bank of Oman and Oman Oil surged 4.62 percent and 5.31 percent respectively. The benchmark rose 1.43 percent to 5,953 points.

"Some confidence has returned to investors," said Khalid Al-Sulaimi, vice president of Muscat-based Gulf Bader Capital Markets.

Commercial Bank of Qatar and Industries Qatar led the main index to close higher as bargain hunters jump into the market.

Commercial Bank and Industries Qatar gained 5.23 percent and 3.23 percent respectively, leading the index up 2.84 percent to 5,750 points.

Bahrain's benchmark edged down 0.09 percent to 2,001 points.

Kuwait's benchmark rose 0.36 percent to 8,583 points, led by Kuwait Finance House, which surged 7.94 points.

Stock markets in the UAE were expected to continue their rebound on Tuesday after several sessions of declines, but fears an economic recession could batter Gulf Arab markets linger.

Most Gulf Arab bourses rose on Monday with Dubai real estate shares leading the gains as investors searched for bargains following recent declines.

"Normally, after ten days of declines, somehow we rebound on a support level so it should sustain itself for one more day," said Sherif Abdelkhalek, institutions accounts manager at Beltone Financial.

"But there is negative sentiment because of global recession fears as developed economies have entered in a recession, so most institutional investors are expecting that the Gulf Arab area would somehow be affected by global recession."

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