Dubai stocks slump to 4-month low
Dubai, June 3, 2012
Dubai-listed Air Arabia and mortgage provider Tamweel headed losers as the emirate's index slumped to a four-month low, with downbeat global sentiment spurring UAE investors to reduce risk.
Air Arabia fell 4.5 percent to its lowest level in at least two years, while Tamweel dropped 2.6 percent.
Dubai's benchmark fell 1.8 percent to 1,445 points, slumping to its lowest level since February 5 as 13 stocks decline and none rise. The benchmark is now down 17.5 percent since March 5's 16-month high, but remained up 7.1 percent in 2012.
'The local news we've had has been positive - Q4 numbers helped the markets have good performance and turnover in Q1, while Q1 results were in line with expectations and justified that rally,' says Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments.
'So I don't see a major upset in terms of fundamentals that would contribute to a sell-off now. Sellers don't have fundamental issues with the region, it's just the high correlation with global markets.'
In Abu Dhabi, the index slipped 0.2 percent to 2,436 points. Sorouh Real Estate and Aldar Properties, the two property firms eyeing a potential merger, slid 4.1 and 2.9 percent respectively. The two developers are regular targets for speculative trade and hence tend to exaggerate index moves.
Kuwait's benchmark dropped 1.2 percent to 6,118 points, slipping to a two-month low. -Reuters