x Abu Dhabi, UAEThursday 27 July 2017

Euro-zone concerns rock Dubai

Stocks in Dubai fell again yesterday even as local companies reported higher earnings, with worries from Europe convincing many investors to pull funding across the Gulf.

The Dubai Financial Market General Index has fallen 6.3 per cent since the start of the month. Jumana El Heloueh / Reuters
The Dubai Financial Market General Index has fallen 6.3 per cent since the start of the month. Jumana El Heloueh / Reuters

Stocks in Dubai fell again yesterday even as local companies reported higher earnings, with worries from Europe convincing many investors to pull funding across the Gulf.

The Dubai Financial Market General Index slid 1.8 per cent to 1,526.94, while the Abu Dhabi Securities Exchange General Index eased by 0.2 per cent to 2,481.13.

The Dubai market gauge has now dropped 6.3 per cent since the start of the month, while stocks in the capital have fallen for the past five consecutive days.

Traders said the rout on Dubai's market could become exacerbated if a psychologically important trading level is crossed.

"The 1,500 is a key level and if we break it, then it could start to look ugly," Julian Bruce, the director of institutional equity sales at EFG-Hermes, told Reuters. "There is some cautious buying on key names now they are nudging interesting levels."

Arabtec was hardest hit yesterday, falling 5.1 per cent even as it reported a tripling of profits after a boom in new contracts and beat market estimates.

The Dubai-listed contracting firm generated quarterly net profits of Dh84 million, compared with Dh26.6m during the same period a year earlier.

Declines in National Bank of Abu Dhabi, Sorouh Real Estate and Aldar Properties led the capital's market lower.

World markets fell on concerns that the euro-zone sovereign debt crisis could worsen as Greece struggles to form a government and an earlier European Union/IMF bailout is thrown into doubt.

Oil prices sank further, with Brent crude futures sliding US$1.58 to $111.93 per barrel and Nymex crude falling 93 cents to $97.01.

Elsewhere in the Gulf, only Bahrain's market rose as all other markets ended the day in the red. The Saudi Tadawul All-Share Index fell 2 per cent to 7,371.42.

ghunter@thenational.ae

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