Dubai shares dip 6.7pc on Arabtec woes

Share prices in Dubai plunged 6.7 per cent on Tuesday, the market’s biggest loss in 10 months, on the back of troubles associated with leading construction company Arabtec. Arabtec was down by the limit of 10pc for the 3rd day running after admitting it had laid off staff following the resignation of its chief executive Hassan Ismaik last week. The Dubai Financial Market Index ended the day at 4,009.1 points, its lowest level since March 14, but at one point during trading it was down 8.7pc at an eight-year low. The developments at Arabtec forced a massive sell-off as most listed firms dropped and all sectors suffered losses. Industrials lost 10pc, financial and investment and services 9.7pc each, telecoms 8.6pc and real estate shed 6.2pc. The DFM Index plunged 7.0pc on August 27 last year on fears of possible US military intervention in the Syrian conflict. Since early May, the Dubai stock exchange, the Gulf’s fifth largest in terms of market value, has shed more than 20pc mostly on Arabtec concerns. After sustaining huge losses at the onset of the global financial crisis in 2008 and the subsequent woes over Dubai's huge debt, the DFM has made an impressive comeback in the past few years. Last year, it gained a mammoth 108 percent after a 20pc rise in 2012 on the back of positive economic indicators for Dubai and the whole United Arab Emirates. Despite the losses in recent weeks, the DFM is still up 18.9 pc on the year while its market capitalisation lost more than $5 billion on Tuesday to around $85 billion. The stock market in neighbouring Abu Dhabi closed down 3.3pc at 4,553.31 points on Tuesday, with investment and financial services losing 9.65pc and real estate shedding 8.0pc, according to AFP.