Markets Update: UAE stock markets extend declines on Wednesday amid a lack of interest, brokers say money is being poured into bonds and stocks that provide dividend payments.
Emaar and Gulf Navigation early casualties as Dubai bourse continues slide
Dubai's stocks extended their declines on Wednesday amid a lack of investor interest after volumes traded hit multi year lows the day earlier.
Emaar Properties, the region's biggest developer, lost 0.7 per cent to Dh2.50. Gulf Navigation, Dubai's only publicly traded oil-tanker owner, declined 1.3 per cent to 23 fils a share. The DFM General Index lost 0.3 per cent to 1346.77 points.
Traded value on the Dubai Financial Market exchange, at about Dh30 billion, is likely to be the lowest since at least 2004, a tenth of the full year 2008 in total.
"The global environment is risk-averse at the moment where investors are looking to fixed income or dividend paying stocks. There is money in the market, its just not in equities at the moment," said Hassan El Salah, head of institutional trading at Al Ramz Securities in Abu Dhabi.
Banking stocks weighed the capital's index. National Bank of Abu Dhabi, the country's second largest lender by assets, fell 1.9 per cent to Dh10.20. First Gulf Bank, the lender controlled by Abu Dhabi's ruling family, lost 0.3 per cent to Dh14.70. The ADX General Index lost 0.3 per cent to 2432.09 points.
Elsewhere in the region, Kuwait's index slipped 0.1 per cent to 5789.10 points. Bahrain's measure lost 0.2 per cent to 1165.25 points. Oman's MSM 30 Index was little changed at 5422.39 points. Qatar's QE Index lost 0.3 per cent to 8580.54 points. The Saudi Tadawul All-Share Index lost 0.8 per cent to 6103.08 points.Ema