Sept. 28 (Bloomberg) -- Dubai’s stocks slumped to the lowest level in almost seven months, led by Emaar Properties PJSC, as oil declined and amid concern Greece’s effort to cut its deficit won’t be enough to prevent a default.
Emaar, developer of the world’s tallest tower, declined 1.4 percent. Emirates Integrated Telecommunications Co., the United Arab Emirates phone company known as Du, dropped to the lowest since March. The DFM General Index lost 0.7 percent to 1,438.41, its lowest since March 8, at the 2 p.m. close in the emirate. The measure is headed for its fourth quarterly drop, retreating 5.2 percent since the end of June. About 57 million shares traded in Dubai today, compared with this year’s daily average of 113 million shares.
“Our markets are lacking leadership, and what we’re seeing in the rest of the world is increasing the fear factor,” said Mohammed Ali Yasin, chief investment officer at Abu Dhabi-based financial services company CAPM Investments PJSC. “We have been defensive in the face of volatile global markets, but it’s worrying that we’re not seeing the same rebounds here that we see there.”
European stocks fell after the Financial Times reported that some euro-area countries are demanding private creditors take bigger writedowns on their Greek bond holdings. German Chancellor Angela Merkel said the country is ready to fulfill the conditions laid down by the so-called troika assessing Greek progress at meeting the terms of its international rescue. The STOXX Europe 600 Index decreased as much as 1.3 percent.
Lack of Rebound
The MSCI Emerging Markets Index, down 22 percent this quarter, rallied 4.9 percent yesterday and the Standard and Poor’s 500 Index increased 1.1 percent as Greece made progress in meeting requirements for more international aid. Dubai’s measure rose 0.1 percent yesterday.
Oil for November delivery slid as much as 2.1 percent to $82.66 a barrel, headed for the biggest quarterly decline since 2008. Gulf Arab oil exporters, including the U.A.E. and Saudi Arabia, supply about a fifth of the world’s oil.
Emaar lost to 2.73 dirhams, the lowest since March 10, and Du dropped 1.3 percent to 2.94 dirhams.
Saudi Arabia’s Tadawul All Share Index declined 0.3 percent, bringing the slump for the quarter to 7.1 percent.
Abu Dhabi’s ADX General Index slipped 0.4 percent, Oman’s MSM 30 Index retreated 0.6 percent and the Kuwait Stock Exchange Unweighted Index decreased 0.1 percent. Qatar’s QE Index was little changed and Bahrain’s BB All Share Index lost 1.4 percent.
--Editors: Claudia Maedler, Inal Ersan
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