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Dubai: The decline continued in the UAE markets on Tuesday with foreign investors selling off on fears of a slowdown in the local real estate and banking sectors as shares in other Gulf states also slumped amid the global financial turmoil.
The Dubai Financial Market General Index ended down 183 points or 5.14 per cent at 3,369.15, extending the three-day loss this week to about 20 per cent.
The Abu Dhabi Securities Exchange Index shed 163 points or 4.58 per cent to close at 3,395.31. The three-day loss for the capital bourse was close to 15 per cent. Real estate and banking stocks continued to be hammered and many of the stocks in these two sectors are touching lower limits.
"Speculation about the real estate sector slowing down and concerns of the liquidity crisis worsening both globally and locally are playing in the minds of the investors," said Sherif Abdul Khalek, institutional accounts manager at Beltone Financial Securities.
Lack of clarity
"The lack of information and clarity from many of the companies also doesn't help. If they come up with official analyses of the company's position that would help alleviate investors' concerns."
In general the UAE is tracking the global markets to an extent and this will exacerbate the panic selling that is driving markets to these levels.
"Money is being pulled out from the markets and is being utilised to fulfil international margins and is also being invested in safer instruments such as bonds and gold," said Shiv Prakash, an analyst at Mac Sharaf Securities.
A tiny silver lining in the market was that locals were net buyers.
"Locals were buyers of Aldar and Arabtec early in the session, but this offered a temporary respite to the massive declines," said Anne Marie Brown of Al Futtaim HC Securities.
Arabtec, which has lost 41 per cent this week, closed at Dh8 and Aldar, which has shed 25.87 per cent in the past three sessions, ended at Dh6.08. Heavyweight Emaar Properties continued to bearish and dropped 2.14 per cent to Dh5.94.
"Markets are bad and the Emaar stock is expected to fall further, and is nearing the next target of Dh5," said Prakash.
Tamweel fell lower, shedding 10.47 per cent to close at Dh2.82. First Gulf Bank, which has shed 26.5 per cent over the past three session,s ended at Dh12.35. Shuaa Capital tumbled 14.78 per cent to Dh2.94.
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