Markets Update: Dubai's market extended losses as negative sentiment over a slowdown in global recovery impacted markets regionally - with video.
Dubai shares fall to two-month low as investors follow the bear
Dubai's shares fell to their lowest point in two months as investors remained bearish on Europe's debt crisis and uncertainty in global markets.
Losses on international markets and a sliding oil price has dictated the movement of regional markets in recent weeks, prompting investors to sit on their positions.
The benchmark Dubai Financial Market General Index fell 1 per cent to 1,528.44 points, its lowest point since 23 March.
The market has lost almost 10 per cent in a month.
Brokers and fund managers have also begun a sell-off in stocks as the summer hiatus approaches.
Dubai Islamic Bank fell the most at the open as its shares slumped 1.4 per cent to Dh2.05, on trading of almost 3 million shares.
Other property heavyweights including Emaar Properties, the builder of the world's tallest tower in Dubai slipped nearly 1 per cent to Dh3.04 and Deyaar Developments retreated 2.3 per cent to 29.8 fils.
Technical analysts have said that once the DFM falls below the 1,550-point level, the market is likely to keep selling off until the next target point.
"There is not any sign of rebound right now, and even if it rebounds the market is still going in a downtrend channel," said Amjad Bakir, the trading manager at Menacorp Alternative Investment in Abu Dhabi.
"The bullish strength is really weak," he said.
The Abu Dhabi Securities Exchange General Index fell slightly and was down 0.1 per cent to 2,613.35 points. The capital's measure was supported by gains in energy giant Dana Gas, as it increased 1.6 per cent to 65 fils.
Earlier this month the company reported an almost threefold year-on-year increase in first quarter net profit to Dh92 million on the back of strong oil prices and higher output from Iraq's Kurdistan region and Egypt. But it said it was facing payment delays in both countries.
Shares in Ras al Khaimah Cement and Methaq are often subject to volatile trading and this morning were both up 4 per cent to Dh1.04 and 4.05 per cent to Dh1.8 respectively.