Markets Wrap: The Dubai Financial Market declined yesterday, tracking global markets as investors feared an additional €30 billion aid package for Spain this month will not stem the euro-zone debt crisis.
Dubai shares fall on Spain and China fears
The Dubai Financial Market (DFM) declined yesterday, tracking global markets as investors feared an additional €30 billion aid package for Spain this month will not stem the euro-zone debt crisis. Disappointing trade figures from China further dampened the mood.
Dubai Investments, which has stakes in more than 40 companies, closed 1.7 per cent lower at 70 fils. The company’s shares fell by as much as 3.8 per cent during the trading session before settling at the 1.7 per cent decline.
The DFM General Index fell 0.2 per cent to 1,488.78.
Asian markets fell as data showed China’s trade surplus reached US$31.73 billion last month, a 42.9 per cent increase when compared with the same period last year.
Japan’s Nikkei Index fell 0.4 per cent to 8,857.73. Korea’s Topix Index declined 0.7 per cent to 758.60.
The UAE stock markets have become highly correlated with global markets recently amid a lack of local catalysts as the slow summer season sets in.
“Investors will be cautious and looking forward to second-quarter earnings,” said Tariq Qaqish, the deputy head of asset management at Al Mal Capital in Dubai.
The Abu Dhabi Securities Exchange General Index slipped 0.1 per cent to 2,474.41.
Elsewhere in the region: Kuwait’s measure inched up 0.1 per cent to 5,853.08; Bahrain’s also slipped 0.1 per cent, to 1,114.72; Oman’s MSM 30 Index fell 0.6 per cent to 5,496.47; and Qatar’s QE Index rose 0.2 per cent to 8,271.79.
The Saudi Tadawul All-Share Index fell 0.6 per cent to 6,713.18.