Bloomberg News

Dubai Shares Drop to Week Low, Led by Emaar on Greek Concern

November 02, 2011

Nov. 2 (Bloomberg) -- Dubai’s shares fell to the lowest in a week, led by Emaar Properties PJSC, as concern heightened that Europe’s bailout of Greece will unravel.

Emaar, developer of the world’s tallest tower in Dubai, dropped 1.1 percent. Aramex PJSC, the Middle East’s largest courier company, retreated for a third day. The DFM General Index lost 0.4 percent to 1,377.48 at the 2 p.m. close in Dubai. The measure surged 4.6 percent in the three-day period ended Oct. 30 after companies reported third-quarter earnings. The Stoxx Europe 600 Index gained 0.3 percent at 12:58 p.m. in London after tumbling 3.5 percent yesterday.

“Negative global sentiment related to the Greece vote has impacted us,” said Waleed Al Khateeb, senior finance manager at Dubai-based Daman Securities LLC. “We are also seeing some more profit-taking as our market was overbought earlier this week.”

Europe’s bailout fund is delaying a 3 billion-euro ($4.1 billion) bond sale after markets were roiled by Greek Prime Minister George Papandreou’s request for a referendum on the rescue pact for his country.

Dubai stocks rallied earlier this week as third-quarter earnings at Emaar and Dubai Islamic Bank PJSC, the United Arab Emirates’ biggest bank complying with Shariah rules, beat estimates and European leaders agreed to expand a bailout fund.

Emaar decreased to 2.67 dirhams, the lowest close since Oct. 27. Aramex fell to 1.76 dirhams, the lowest since Oct. 23.

Oman’s MSM30 Index decreased 0.5 percent, while Abu Dhabi’s ADX General Index lost 0.3 percent. Kuwait’s gauge was little changed. The Bloomberg GCC 200 Index advanced 0.7 percent and Saudi Arabia’s Tadawul All Share Index rose 1 percent. Qatar’s QE Index gained 0.6 percent and Bahrain’s gauge increased 0.2 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


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