Bloomberg News

Dubai Stocks Fall Most in 3 Weeks on Greek Debt Concern, Oil

September 12, 2011

Sept. 12 (Bloomberg) -- Persian Gulf shares fell, sending Dubai’s index down the most in more than three weeks, on concern Greece may default on its debt and as crude oil dropped.

Emaar Properties PJSC, the developer of the world’s tallest tower, slipped 1.4 percent. Dubai Financial Market PJSC, the only Gulf Arab stock market to sell stock to the public, retreated for a second day. The DFM General Index lost 0.9 percent, the most since Aug. 21, to 1,460.20 at the 2 p.m. close in Dubai. The Bloomberg GCC 200 Index of the region’s stocks dropped 1.2 percent and the MSCI Emerging Markets Index declined 2.2 percent.

“Global factors continue to impact stock prices,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “Worry about the default of Greece and the slowing of global economies in addition to the complications in Arab Spring revolutions are causing investors to stay on the sidelines.”

German government officials are debating how to shore up the nation’s banks should Greece fail to meet budget-cutting terms of its aid package, three coalition officials said Sept. 9. Moody’s Investors Service may cut the credit ratings of BNP Paribas SA, Societe Generale SA and Credit Agricole SA this week because of their Greek holdings, two people with knowledge of the matter said.

Arab Spring

About 80 million shares traded in Dubai today, compared with the 12-month daily average of 123 million shares, according to data compiled by Bloomberg.

Oil for October delivery retreated as much as 2.6 percent to $85 a barrel on the New York Mercantile Exchange. Gulf Arab oil exporters, including Saudi Arabia and the United Arab Emirates, supply about a fifth of the world’s oil.

Egypt’s ruling military council declared a state of emergency to restore order after protesters attacked the Israeli embassy in Cairo. Israel’s Prime Minister Benjamin Netanyahu told his nation on Sept. 10 that the incident had damaged “the fabric of peace” between the two countries while declaring his commitment to the 32-year alliance.

Emaar dropped the most since Aug. 21 to 2.79 dirhams and Dubai Financial Market retreated 1.7 percent, also the most since Aug. 21, to 1.13 dirhams.

Oman’s MSM 30 Index slipped 0.6 percent. SMN Power Holding SAOG, a venture between International Power Plc, Mubadala Development Co. and Oman’s National Trading Co., started an initial share sale of a 35 percent stake in the company. BankMuscat SAOG, the financial adviser on the IPO, fell 0.3 percent to 0.684 rial.

Abu Dhabi’s ADX General Index lost 0.4 percent and Qatar’s QE Index declined 1 percent. Bahrain’s BB All Share Index dropped 0.4 percent, while Kuwait’s gauge slipped less than 0.1 percent. Saudi Arabia’s Tadawul All Share Index retreated 1.7 percent.

--Editors: Claudia Maedler, Susan Lerner

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


Too Cool for Crisis Management
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus