Dubai can now consider itself corrected.
The emirate's stock market fell sharply yesterday, its biggest one-day price drop in more than a year, ahead of a euro-zone report that confirmed a slowdown for the debt-ridden economy in the fourth quarter.
Emaar Properties, the region's biggest developer, fell 2.9 per cent to Dh2.96 a share. Shares of Dubai Financial Market Company declined 6.4 per cent to Dh1.16. The Dubai Financial Market General Index lost 3.7 per cent, its biggest decline since February 28 of last year, to close at 1,689.18. Still, the benchmark is up 24.8 per cent since the start of the year.
After the trading session, the EU statistics office Eurostat said the euro-zone economy slowed 0.3 per cent in last year's fourth quarter, as household spending, exports and manufacturing declined. "Global markets have been performing negatively, while UAE stock markets were already due for a correction considering the aggressive rally that started in January," said Marwan Shurrab, the chief trader at Gulfmena Investments in Dubai.
Aldar Properties, Abu Dhabi's biggest developer, fell 4.7 per cent to Dh1.21. Sorouh Real Estate, the capital's second-biggest developer, slumped 5.4 per cent to Dh1.21.
The Abu Dhabi Securities Exchange General Index retreated 0.5 per cent to 2,610.06.
Elsewhere in the region, Kuwait's measure rose 0.4 per cent to 6,227.90, Bahrain's advanced 0.3 per cent to 1,156.53, Oman's MSM 30 Index was little changed at 5,864.98, and Qatar's QE Index fell 0.6 per cent to 8,666.13. The Saudi Tadawul All-Share Index rose 0.6 per cent to 7399.87.