Dubai shares fell the most in more than seven months and Abu Dhabi's benchmark index had its biggest drop since January Tuesday after the World Bank said the global recession would be deeper than expected. Banking stocks led the declines with the Emirates NBD, the UAE's largest lender, falling 4.6 per cent. The Dubai Islamic Bank (DIB) shed 6.5 per cent.
Property stocks also suffered major declines as Emaar Properties, the developer of the world's tallest tower, lost 8.8 per cent. "Declines were correlated to what has been happening in the global scene with regard to the price of oil and the tumbling of global stocks," said Ayman el Saheb, the director of operations at Darahem Financial Brokerage. The Dubai Financial Market General Index lost 5.9 per cent to 1,839.1, its biggest decline since Nov 16. The Abu Dhabi Securities Exchange General Index fell 3.2 per cent. Qatar's Doha Securities Market Index lost 1.8 per cent to 6,438.60, the lowest since May 12.
Investors were also concerned about recent management reshuffles at several Dubai companies, prompted by the recent resignation of Nasser al Shaikh as chairman from four companies this week, including Deyaar, the DIB and National Bonds. Mr al Shaikh was also removed as Dubai's finance director last month. "Nasser al Shaikh's resignation from a number of companies tended to worry some of the investors," Mr el Saheb said.
Stocks of developing nations have retreated 10 per cent from their highs of this year, marking the first "correction" since they began rallying almost four months ago. Crude oil for August delivery slumped 0.8 per cent yesterday to trade at US$66.37 a barrel on the New York Mercantile Exchange. Other regional stock markets also declined yesterday. Saudi Arabia's Tadawul All Share Index retreated 2.3 per cent to 5,578,95. The measure has lost almost 8 per cent in the past five days.
Oman's Muscat Securities Market 30 Index decreased 1.2 per cent, while the Kuwait Stock Exchange Index rose 0.2 per cent. The Bahrain All Share Index fell 0.2 per cent. * with agencies tpantin@thenational.ae
