French and German officials will meet Aug 16 to discuss economic governance of euro region
Dubai’s index declined for the first time in four days, led by Dubai Islamic Bank, ahead of a meeting on Tuesday where French and German officials will discuss measures to curb Europe’s financial crisis.
Dubai Islamic, the United Arab Emirates’ biggest Shariah- compliant lender, slipped 1.5 percent and property company Deyaar Development fell the most in almost a week.
The DFM General Index retreated 0.6 percent to 1,470.39, the lowest since August 11 at the 2 pm close in Dubai. About 34 million shares traded in the emirate, compared with a 12-month daily average of 123 million, according to data on Bloomberg.
In Oman, Renaissance Services SAOG slid the most in six years.
“Investors are cautious and are awaiting the results of the meeting between Germany and France with regard to what tools and how much the bailout package will be,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “If results of the meeting are positive, then we might see a follow-up buying in the Gulf stock markets.”
French President Nicolas Sarkozy and German Chancellor Angela Merkel will meet August 16 in Paris to discuss economic governance of the euro region, according to statements from both leaders’ offices. France, Spain, Italy and Belgium imposed bans on short selling to stabilize markets after European banks hit their lowest level since the credit crisis. A short is a bet an asset will decline.
The STOXX Europe 600 Index declined less than 0.1 percent, bringing its loss for the month to 11 percent, while the MSCI Emerging Markets Index gained 1.5 percent, paring the August drop to 12 percent. Equities tumbled this month spurred by concern the global economy is slowing and the US may enter a recession.
Trading volumes in Dubai have declined this month to an average 96 million shares per day as the Islamic holy month of Ramadan, when Muslims fast from sunrise to sunset and business activity slows, started August 1.
Dubai Islamic fell the most in a week to AED1.99 and Deyaar lost 1.4 percent, the most since August 9, to 27.5 fils.
Renaissance Services tumbled 10 percent, the biggest drop since April 2005, to OR0.621. The Omani provider of service to the oil and gas industry said first-half profit tumbled 77 percent to OR2.26m ($5.9m) and the head of its Topaz unit resigned.
The Bloomberg GCC 200 Index of the region’s stocks rose 0.5 percent at 1:38 p.m. in Riyadh.
Oman’s MSM 30 Index, Abu Dhabi’s ADX General Index, Qatar’s QE Index and Bahrain’s measure were little changed. The Kuwait Stock Exchange Unweighted Index rose 0.2 percent. Saudi Arabia’s Tadawul All Share Index gained 0.6 percent.