Dubai shares drop on European debt concern
Monday, 15 November 2010
DUBAI, Nov 14 (Bloomberg): Dubai shares retreated a third day, leading a decline in the Gulf, after global markets slumped on concern some European countries will struggle to repay debt and investors trimmed holdings before a Muslim holiday.
Emaar Properties PJSC, builder of the world's tallest skyscraper in Dubai, led the decline and Emirates NBD PJSC, the United Arab Emirates' biggest lender by assets, slipped 0.9 per cent.
The DFM General Index slid 0.4 per cent to 1,685.52, at 11:52 am in Dubai. The GCC 200 Index of regional stocks fell as much as 0.2 per cent. Saudi Arabia's and Kuwait's markets are closed today for Eid.
Gulf shares are dropping because of a "weak international lead," said Tarek Lotfy, executive director at Dubai-based Arqaam Capital Ltd. "Most market participants are out for the week, so volumes are expected to remain low."
US and emerging market shares declined last week as concern about Europe's debt crisis intensified and speculation China will boost interest rates grew. The Group of Twenty (G20) leaders meeting in Seoul discussed Ireland's debt problems amid speculation the European Union will need to step in with a bailout.
The Standard & Poor's 500 Index slumped 2.2 per cent last week, its biggest weekly drop in three months. The MSCI Emerging Markets Index retreated 3 per cent last week, the most since the week ended Aug 13, while the Stoxx Europe 600 Index decreased 0.7 per cent.
UAE and Qatar's stock markets will close from tomorrow and resume trading on Nov 21 to mark Islam's Eid al-Adha holiday. Kuwait is closed until Nov 18 and Bahrain will shut from Nov 16 to Nov 18.
Crude oil for December delivery fell 3.3 per cent to $84.88 a barrel on the New York Mercantile Exchange on Nov 12. The six nations of the Gulf Cooperation Council, including the UAE and Saudi Arabia, supply about a fifth of the world's oil.
Emaar Properties PJSC, builder of the world's tallest skyscraper in Dubai, led the decline and Emirates NBD PJSC, the United Arab Emirates' biggest lender by assets, slipped 0.9 per cent.
The DFM General Index slid 0.4 per cent to 1,685.52, at 11:52 am in Dubai. The GCC 200 Index of regional stocks fell as much as 0.2 per cent. Saudi Arabia's and Kuwait's markets are closed today for Eid.
Gulf shares are dropping because of a "weak international lead," said Tarek Lotfy, executive director at Dubai-based Arqaam Capital Ltd. "Most market participants are out for the week, so volumes are expected to remain low."
US and emerging market shares declined last week as concern about Europe's debt crisis intensified and speculation China will boost interest rates grew. The Group of Twenty (G20) leaders meeting in Seoul discussed Ireland's debt problems amid speculation the European Union will need to step in with a bailout.
The Standard & Poor's 500 Index slumped 2.2 per cent last week, its biggest weekly drop in three months. The MSCI Emerging Markets Index retreated 3 per cent last week, the most since the week ended Aug 13, while the Stoxx Europe 600 Index decreased 0.7 per cent.
UAE and Qatar's stock markets will close from tomorrow and resume trading on Nov 21 to mark Islam's Eid al-Adha holiday. Kuwait is closed until Nov 18 and Bahrain will shut from Nov 16 to Nov 18.
Crude oil for December delivery fell 3.3 per cent to $84.88 a barrel on the New York Mercantile Exchange on Nov 12. The six nations of the Gulf Cooperation Council, including the UAE and Saudi Arabia, supply about a fifth of the world's oil.