Dubai stocks fall to 16-month low

30/06/2010 00:00 AST

Dubai-based developer Deyaar slid on Tuesday after giving up the management of a major residential project, dragging the emirate's index to a 16-month low.

Most other Middle East markets also dipped, mirroring declines on international bourses as risk appetite dwindled on renewed worries over euro zone debt.

"We can't escape the global trend - there's widespread fear that if a major market goes down they know something we don't, so we just follow," said Sayed Quadry, vice-president of business development at Amwal Investment in Muscat.

Deyaar dropped 6.7 percent, ending within two fils of June 20's all-time low after it said it would not manage the Skycourts project. At its 2006 launch, Skycourts was said to be worth $409 million

Dubai's index fell 2.2 percent to 1,482 points, its biggest decline for four weeks and lowest finish since Feb. 10, 2009.

The Abu Dhabi index also dropped 0.9 percent to 2,531 points.

The Saudi Tadawul All-Share Index (TASI) dropped 2.65 percent to 6,135.86 points as falling oil prices and concerns over quarterly earnings weighed. The sector activity was totally negative with losses seen all across the board ranging from 0.98 percent by the Retail Sector to 4.02 percent by the Insurance sector. However the biggest loser for the day was the Banks and Financial Services sector losing 1.99 percent or 328.21 points. The overall market breadth remained strongly negative with only 10 advancers against 131 decliners giving an AD ratio of 0.076, the Financial Transaction House (FTH) said in its daily market report.

Saudi Basic Industries Corp. (SABIC) fell 3.9 percent and Rabigh Refining lost 4.5 percent.

"We are witnessing the effect of Asian and international markets - oil was down 2 percent at the open, so petrochemicals had to go down and that pressured the rest of the market," said Saleh Al-Onazi of Swicorp in Riyadh.

"Investors are waiting for earnings and so far the estimates are not that promising, indicating the same profits as Q1 or slightly higher."

An end-of-quarter surge helped Kuwait's index rise 0.5 percent to 6,587 points, its first gain for five sessions.

The Qatari index fell 1.1 percent to 6,967 points. Industries Qatar (IQ) dipped 1.9 percent to a two-week low.

The Omani index dropped 0.9 percent to 6,071 points.

Egypt's benchmark dropped 2.2 percent, with the country's fiscal year ending on Wednesday.

Arab News