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Dubai stock market hits six-year low

Discussion in 'Greater Asia & Middle East' started by Anees, Jun 24, 2014.

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  1. Anees

    Anees Lt. Colonel ELITE MEMBER

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    Dubai: Dubai stock market is trading at a six-year low as selling spree continues, led by real estate, services, investment and financial shares.

    The benchmark index – DFM – plunged 8.34 per cent to 3940.02 points, its lowest since October 2008 at 1.40PM. The shares entered a bear market from Sunday after falling 20 per cent since May.

    Arabtec shares declined to its lowest since February after the company sacked a number of staff. It is trading at 9.83 per cent.

    Aman, Deyaar and Dubai Investment, National Cement and Gulf General Investments have hit the 10 per cent limit. Abu Dhabi’s index is trading 3.59 per cent lower at 4540.44 points, led by real estate, energy, investment and financial shares.

    Dubai stock market hits six-year low | GulfNews.com

    Dubai, Abu Dhabi stock markets plunge: Where are the bulls?
    DFM Index plunges below 4,000; ADX slips 3.6% as shares see massive correction prior to Ramadan
    By
    • Vicky Kapur
    Published Tuesday, June 24, 2014
    UAE stock markets are witnessing price-corrections and perhaps the effect of upcoming holy month of Ramadan when trading levels traditionally decline.

    On June 24, the benchmark Dubai Financial Market (DFM) index fell below the psychological 4,000-mark in intra-day trade, with the index down by 8.25 per cent to 3,940 points at around 1.40pm this afternoon.

    Abu Dhabi Exchange (ADX) too fell by about 3.9 per cent by around the same time, with the index declining by about 185 points to 4,525 points in intra-day trade this afternoon.

    Shares on Dubai’s stock market have plunged by almost 27 per cent in seven weeks since hitting a multi-year peak on May 6, when the index reached an intra-day high of 5,389.80. However, since then, the benchmark index has slid, with analysts fearing an end to the bourse’s biggest bull market since 2005.

    On the other hand, shares on ADX are down more than 13.5 per cent in less than a month, from a high of 5,255.35 on May 29 to 4,525 in today’s intra-day trade.

    Both DFM and ADX indices are at multi-month lows, with DFM index falling below 4,000 points for the first time since March. Meanwhile, the ADX last saw these levels (below 4,550) in January this year.

    Shares on DFM rallied almost 350 per cent in a little over three years after hitting a multi-year-low of 1,360 on March 2, 2011. The emirate’s economic recovery, aided by a booming trade, tourism and real estate sectors, boosted share trade.

    After more than three years of solid gains, the market was indeed looking at some sort of correction, and the DFM General Index declined almost 7 per cent, or 360 points, to 3,940 at about 13.40 Tuesday afternoon, after falling from a high on May 6.

    The drop was led by several real estate and financial services stocks that hit the circuit-breaker on the downside, sliding by 10 per cent, including Deyaar Development, Gulf General Investments Company (GGICO), Dubai Islamic Insurance and Reinsurance (Aman), Dubai Investments, National Cement Company, and Islamic Arab Insurance Co. (Salama).

    In addition, Gulf Finance House, Drake & Scull International, Union Properties, and the bourse’s own listing DFM were down 9.9 per cent each around that time.

    On the ADX too, several stocks were down 10 per cent, including property developer Aldar and oil & gas major Dana Gas. Additionally, Methaq Takaful Insurance, Abu Dhabi Ship Building and Gulf Cement were down about 9.9 per cent.

    On the DFM, trading topper Arabtec Holding, which tumbled 9.9 per cent yesterday, was again down 9.8 per cent today and was last trading at Dh3.120. Arabtec has been the primary mover of the market in the past few days.

    The stock is down 53 per cent since the beginning of this month (June) amidst reports of layoffs and the fact that its major shareholder, Abu Dhabi-based Aabar Holdings, has liquidated part of its stake in the Dubai-based construction firm.

    Hasan Ismaik, the CEO of Arabtec resigned last week after volatility in the company’s share prices. Ismaik became the first Jordanian billionaire to join the Forbes’ billionaire league after the businessman increased his stake in the publicly-traded Arabtec.

    Emaar Properties, the stock with the biggest weighting on Dubai’s index, fell 8.5 per cent to 8.010 after falling almost 5 per cent yesterday.

    Dubai, Abu Dhabi stock markets plunge: Where are the bulls? - Emirates 24/7
     
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