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The contagion impact from the crisis in Turkey was being felt in Dubai, along with other emerging markets.
The impact was felt largely through Emirates NBD, which recently entered an agreement with a Russian Bank to buy a bank in Turkey. And traders battered Emirates NBD shares for a second straight day as a weak lira meant lower valuations of the acquisition target.
Emirates NBD shares fell 4.58 per cent to Dh9.38, and it was the most-active stock in trade, contributing to 27 per cent of the total traded value. Emirates NBD, which has a 7.94 per cent weight on the index, weighed on Dubai’s main stock market gauge. The Dubai Financial Market General index closed 1.46 per cent lower at 2,847.14.
“Today’s market correction is similar to yesterday’s. It’s just that the lira’s fall and situation in Turkey got much worse on Monday, after the weekend shock, with no clear resolution in sight. Accordingly, there is a risk-off environment across markets in general,” Nishit Lakhotia, Head of Research, Bahrain-based Sico Bank told Gulf News.
“The ongoing escalating Turkey — US diplomatic issue, especially over the weekend, and its repercussions on the currency, is a matter of concern as many GCC companies and investors, including some in the UAE, have direct or indirect exposure to Turkey,” Lakhotia said.
“This may again provide opportunity to do some selectively stock picking for medium to long term investors, especially in Dubai, but one should only gradually build up positions, given the geopolitical risks and fragile macro environment in the UAE,” he added.
The Dubai index has shed more than 11 per cent so far in the year. In other stocks, Emaar Properties closed 2.29 per cent lower at Dh5.12.
“One needs a bit of patience with Emaar. Macro environment remains soft and real estate market in Dubai is yet to bottom-out. However, in term of stock’s valuation, it is cheap and has a good upside from current levels,” Lakhotia said.
The Abu Dhabi Securities Exchange general index closed 0.9 per cent higher at 4,800.90. First Abu Dhabi Bank closed 1.08 per cent lower to Dh13.5.
“FAB has outperformed its peers recently and does not look cheap at current levels. We expect the stock to continue to correct in the near term as investors book profits,” he added
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 2.66 per cent lower at 7,850.35, leading regional losses.
The MSM30 index ended lower on Monday and closed at 4,381.92 points, down by 0.55 per cent. MSM Sharia Index closed at 605.47 points, down by 0.07 per cent. Bank Nizwa was the most active in terms of
Times of Oman
Qatar stocks led losses across the Gulf on Sunday as the Turkish currency crisis unsettled investors. Every regional index ended the day in negative territory. The Doha measure declined by 2.6 perce
The MSM30 index ended lower on Sunday and closed at 4,406.35 points, down by 0.56 per cent. MSM Sharia Index closed at 605.87 points, down by 0.31 per cent. Al Anwar Holding was the most active in te
Times of Oman
The Dubai index fell more than 1 per cent on Sunday, its sharpest fall since July 2, as shares like Emirates NBD and DAMAC Properties weighed on sentiment.
The Dubai Financial Market Genera
Kuwait stocks swung lower on Sunday following last week’s winning spree. The All Shares Index dipped 23.99 pts in choppy trade to 5256.87 points as profit taking dragged most of the heavyweights i