Dubai shares fell yesterday amid Asian market turmoil after Japan's central bank warned of 'downside risks' triggered by the European debt crisis.
Japan alert hits bank stocks
Dubai shares declined yesterday after Japan's central bank warned of downside risks to its economy, causing a contagion for Asian stock markets.
Banking stocks were the most affected. EmiratesNBD shares fell 5.8 per cent to Dh2.76.
Shuaa Capital slumped 5 per cent to 51 fils a share. The Dubai Financial Market General Index lost 0.7 per cent to 1328.53. Earlier in the trading session the index reached 1325, a fresh low.
Board members at the Bank of Japan said financial-market turmoil from Europe's debt crisis and the yen's appreciation were increasing risks for growth.
Japan's Nikkei 225 Iost 0.4 per cent, Korea's KOSPI Index dropped 0.7 per cent and the Shanghai Composite Index lost 1 per cent.
"Most of the companies are bleeding amid hesitation among investors," said Wadah Al Taha, the chief investment officer at Al Zarooni Group in Dubai.
Aldar Capital dropped for a second day, while yields on its US$1.25 billion bond dropped to a five-month low after the capital's biggest developer said its board was considering selling some assets. Aldar's shares declined 2.4 per cent to 81 fils. The rate on its bond maturing May 2014 dropped to 5.91 per cent, the lowest since August 4.
The Abu Dhabi Securities Exchange General Index was little changed at 2351.48.
Kuwait's measure lost 0.1 per cent, Bahrain lost 0.3 per cent and Oman's index lost 0.2 per cent. Qatar added 0.1 per cent and the Saudi Tadawul All-Share Index dropped 0.2 per cent.