Dubai suffers largest one-day fall in seven weeks

UPDATE 6: Gulf exchanges struggle as they track losses on global markets.
Dubai suffers largest one-day fall in seven weeks
By Reuters
Mon 17 Aug 2009 10:53 AM

Dubai's index suffered its largest one-day loss for seven weeks as 21 stocks fell by more than 4 percent, sparked by worries over the debt burden at Union Properties and a worldwide pullback in equities.

Union Properties

plunges 9.6 percent, taking its losses to 18.3 percent since it posted a second-quarter loss on Thursday.

Fellow developers
Emaar Properties

and
Deyaar

dropped 8.8 and 6.7 percent respectively. Construction firm Arabtec slid 8.5 percent.

The index fell 5.8 percent to 1,774 points, its biggest decline since June 28 and third decline in four sessions since posting an eight-week high on Tuesday. Volumes nearly doubled from the day before, indicating rising selling pressure.

Abu Dhabi's index ended lower for a second day, making its largest one day fall for eight weeks as property stocks tumbled.

Aldar Properties

and
Sorouh Real Estate

fell 8.7 and 9.7 percent respectively.

The index dropped 2.4 percent to 2,783 points, its biggest reverse since June 23. Sixteen stocks fell by more than 3 percent.

All seven Gulf Arab indexes were down, tracking losses on global markets as doubts about the strength of a global economic recovery triggered a risk asset sell off.

Saudi Arabia's index made its biggest single-session decline for nearly two months, tracking a rout in global stocks.

Saudi Basic Industries Corp (SABIC) plunged 6.2 percent, Rabigh Refining and Petrochemical Co lost 3.5 percent and Al-Rajhi Bank dropped 2.6 percent.

The index fell 2.5 percent to 5,711 points, its biggest fall since June 21. Volumes hit a four-session high.

World equities are down more than 2 percent, with Asian stocks slipping to a two-week low as gloomy U.S. data sparks profit-taking.

"The herd is going in a different direction on a daily basis - fundamentals are not solid enough to promote major buying for any signficant length of time," said Julian Bruce, EFG-Hermes director of institutional equity sales.

"The markets are in a state of flux, with continued volatility and uncertainty - contradictory data about the global economy is coming out on a near daily basis."

Qatar's index made its largest decline for more than a month as a downturn in regional and global equities spurred investors to cash in gains from a recent high.

Barwa Real Estate

dropped 4.6 percent and
Qatar Gas Transport Co (Nakilat)

lost 2.8 percent.

The index fell 2.2 percent to 6,857 points, its biggest single-day loss since July 12, and taking its losses to 3.5 percent since Tuesday's eight-week closing high.

Bahrain's measure fell for a second day, slipping 0.5 percent to 1,512 points.

Banks were the biggest drag on Oman's index, which made its largest one-day decline for more than a month.

Bank Muscat

and
Bank Dhofar

lost 2.3 and 2.9 percent respectively.

The index fell 1.1 percent to 6,097 points, its biggest reverse since July 13 and first decline for three sessions.

Zain

reached a fresh 10-month closing high after its chief executive was quoted as saying the firm was in talks with three telecoms operators over the sale of its African assets.

Zain

rose 1.4 percent to 1.44 dinars, its highest finish since September 29, 2008. This gain limited losses on Kuwait's index, which fell for the first session in three.

Kuwait Food Co

rose 2.3 percent. The Kharafi group is a major shareholder in both
Kuwait Food Co

and
Zain

.

National Mobile Telecommunications Co (Wataniya)

was the main drag, falling 3.5 percent.

Kuwait's index slipped 0.4 percent to 7,916 points. (Reuters)

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