Text size:

  • Small
  • Normal
  • Large

Stock trading to reopen with Dubai World fallout likely

Markets reopen in the UAE today with analysts expecting more selling pressure after heavy losses in the wake of Dubai World's request for a standstill on its debt payments.

Stock markets reopen in the UAE today after a two-day National Day holiday with analysts expecting more selling pressure after heavy losses last week in the wake of Dubai World's request for a standstill on its debt payments. The Dubai World announcement of November 25 caused declines in exchanges worldwide and spread to Gulf markets after the Eid Al Adha holiday. As UAE stock markets reopened last Monday, the Dubai Financial Market General Index lost 7.3 per cent, the most since October last year, while the Abu Dhabi Securities Exchange General Index fell 8.3 per cent, its largest drop in eight years. Those declines continued into last Tuesday.

Still, there is likely to be more stability this week, said Ian Munro, the head of research at MAC Capital Advisors. "There is some more selling pressure left in some of the core index stocks such as Emaar, DFM and some of the main banks," he said. "But, pleasingly, some of the more cash-flow positive companies without direct earnings exposure to Dubai World have found some buying support." Stocks including Emaar, Aldar and National Bank of Abu Dhabi (NBAD) were suspended last week after falling by the 10 per cent maximum. NBAD, the only UAE bank to declare its Dubai World exposure, holds US$345 million (Dh1.26 billion) of its debt.

Mr Munro said that the market was looking for clarity on the extent of banking sector exposure to Dubai World and the Dubai Government cash flow shortages. Investors were also awaiting feedback from Dubai World creditors, he said. The Saudi Tadawul benchmark index declined yesterday as it opened for the first time since the Dubai World announcement. It fell 1.1 per cent to 6,288.27 from its November 25 close, as banking and financial stocks fell 2.3 per cent.

rbundhun@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National