x Abu Dhabi, UAESaturday 22 July 2017

Korean conflict and Euro crisis hits Dubai stocks

As world markets reacted to the fall-out from the Korean conflict Dubai stocks mirrored international sentiment with shares falling today.

South Korea's Yeonpueong Island is engulfed in thick smoke as North Korea reportedly fired hundreds of artillery from its stronghold on the west coast toward the South Korean waters.
South Korea's Yeonpueong Island is engulfed in thick smoke as North Korea reportedly fired hundreds of artillery from its stronghold on the west coast toward the South Korean waters.

 

Dubai stocks ended lower today as renewed hostilities between North and South Korea and concerns that the euro-crisis will spread beyond Ireland put pressure on stocks.

In a reverse of yesterday's positive gains, the Dubai Financial Market (DFM) fell 1.16 per cent to 1,691.48 points.

Meanwhile, the Abu Dhabi Securities Exchange Index gained 0.07 per cent to 2,755.81 points.

Property stocks contributed to the fall in Dubai, as shares in Emaar dropped 1.86 per cent to Dh3.69. Dubai Islamic Bank also slipped 1.76 per cent to Dh2.23 while Arabtec inched 2.6 per cent lower to Dh1.87.

The Abu Dhabi exchange was little changed, with Etisalat making the only positive gain in early trading. The telecoms company's shares closed 0.5 per cent higher to Dh10.95. The stock has fallen 7.6 per cent since mid-October.

"A lot of the GCC markets are trading on international sentiment based on international news," said Scott Darling, a research analyst at Nomura.

"There's not much of a catalyst in the local markets but it doesn't change the fundamentals of [of UAE companies]," Mr Darling said, adding that many investors and fund managers are sitting on funds that they will not pay into the market till 2011.