Bloomberg News

Dubai Index Extends Drop on Global Growth Concern; Emaar Falls

November 23, 2011

Nov. 23 (Bloomberg) -- United Arab Emirates shares declined, with Dubai’s measure closing at a seven-year low for a second day, as the U.S. economy grew less than expected, stoking concern global growth is faltering. Oil dropped.

Dubai’s Emaar Properties PJSC, developer of the world’s tallest building, decreased for a fifth day. Abu Dhabi Commercial Bank PJSC, the U.A.E.’s third-biggest lender by assets, dropped 1.1 percent. Dubai’s DFM General Index slipped 0.3 percent to 1,347.07, the lowest close since June 2004. About 46 million shares traded, compared with a 12-month daily average of 102 million. The ADX General Index fell 0.4 percent to the lowest level since March 2009.

“Regional markets are taking their cue from events in Europe and the U.S.,” said Mahdi Mattar, head of research at Abu Dhabi-based CAPM Investment PJSC, an investment banking company. U.A.E. investors “have lost conviction in the market and will wait it out until a major catalyst is presented.”

Standard & Poor’s 500 Index futures fell 0.9 percent at 4:34 p.m. in Dubai after revised Commerce Department figures showed gross domestic product climbed at a 2 percent annual rate in the third quarter, less than a 2.5 percent prior estimate. The MSCI Emerging Markets Index fell 2 percent after a survey by HSBC Holdings Plc and Markit Economics showed China’s industrial output may slow.

Crude oil for January delivery slid as much as 2.3 percent to $95.76 a barrel in electronic trading on the New York Mercantile Exchange. Gulf Arab oil exporters including the U.A.E. and Qatar supply about a fifth of the world’s oil.

Emaar slipped 0.8 percent to 2.5 dirhams, the lowest close since Oct. 26. Abu Dhabi Commercial decreased to 2.82 dirhams, the lowest since Oct. 24.

Bahrain’s benchmark dropped 0.6 percent and Qatar’s QE Index fell 0.4 percent. Saudi Arabia’s Tadawul All Share Index slipped 0.3 percent, bringing its drop for the week to 2.2 percent. Kuwait’s SE Price Index and Oman’s MSM30 Index were little changed.

--Editors: Claudia Maedler, Shaji Mathew

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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