Dubai at 16-mth low as Gulf markets fall
Posted by cvbasheer on September 19, 2010
DUBAI – Middle East markets extended losses on Wednesday, with Dubai falling to a 16-month low as overnight losses on U.S. bourses pushed regional investors to sell.
Saudi and Omani stocks fell for the sixth session in seven, Kuwaiti shares for the fifth in six and the Egyptian market extended its losing streak to seven trading days.
“It’s still too early to position for Q2 numbers, especially with the inherent volatility,” said Julian Bruce, EFG-Hermes director of institutional equity sales.
Dubai’s index fell 1.4 percent to 1,462 points, its lowest close since Feb. 9, 2009. Arabtec dipped 2.8 percent and Dubai Financial Market lost 2.1 percent.
“Today was a reaction to the aggressive sell-off on international markets following disappointing economic numbers from China and there’s a lack of interest locally in our markets so they are moving lower,” said Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments.
“China and Asia had been expected to lead growth in 2010, while the Europe and the U.S. were facing problems.”
On Tuesday, a Chinese economic indicator was revised downwards, hitting global sentiment.
Dubai investment bank Shuaa Capital fell 6.3 percent to a 13-month low after the chief executive of its brokerage arm resigned.
Abu Dhabi’s benchmark also declined, falling 0.7 percent as Aldar Properties and Sorouh Real Estate lost 3.5 and 4.9 percent respectively.