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No let up as UAE real estate shares slump continues

UAE real estate shares took another battering on Tuesday with worries over the global financial turmoil hitting the already stricken property market the hardest.

The five largest real estate companies listed on UAE markets fell on average by more than six percent as
Dubai's main index ended 5.14 percent lower and Abu Dhabi closed down 4.58 percent.
So far in 2008, shares in Emaar Properties, Aldar Properties, Sorouh Real Estate, Deyaar Developments and Union Properties have slumped by an average of about 50 percent.

Deyaar's chief executive on Tuesday denied as unfounded a media report that it was preparing to merge with Union Properties.

The poor performance of real estate shares comes as Dubai hosts its annual Cityscape exhibition.

Elsewhere on the Dubai index, shares in Emirates NDB and Dubai Islamic Bank fell 3.79 percent and 4.76 percent, while Dubai Investments ended more than 13 percent lower.

Construction firm Arabtec finished more than 12 percent lower.

"It's obviously the (speculation on) the buyback underpinning any drastic moves," said Matthew Wakeman, managing director of cash and equity linked trading at EFG-Hermes.

Wakeman also said Emaar shares are now at such low levels in comparison to the rest of the real estate sector that investors are more inclined to stay put.

Abu Dhabi's main index ended 4.58 percent lower at 3,395 points, with bank and property stocks among the top losers.

National Bank of Abu Dhabi and First Gulf Bank declined 8.5 percent and 9.1 percent respectively.

Shares in Saudi Arabia, the biggest Arab equity market, fell 8.7 percent to their lowest level since the index was reformulated in 2007, while Egypt's main index fell 16 percent to erase all gains since mid-2006.

Kuwait's main index ended 2.64 percent lower at 11,635 points as bank and telecoms weigh.

Shares in Mobile Telecommunications Co (Zain) dipped 7.94 percent, extending losses from the previous session.

National Bank of Kuwait, Kuwait Finance House and Commercial Bank of Kuwait ended 2.41 percent, 5.05 percent and 1.64 percent lower respectively.

Qatar's main index closed 1.55 percent lower at 8,147 points.

Industries Qatar and Qatar National Bank ended 2.1 percent and 2.3 percent lower, while Qatar Gas and Transport and Commercial Bank of Qatar finished 1.1 percent and 1.9 percent lower.

In Bahrain, the index closed 1.33 percent lower at 2,384 points, weighed down by banking stocks.

Gulf Finance House and Bahrain Islamic Bank ended 9.83 percent and 4 percent lower.

Eamon Alashkar, head of capital investment at Colliers International, told Arabian Business: "We have seen large institutional investors who have bought shares but are now pulling out. They have bought large chunks of shares and now retail investors are following suit."

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