The Gulf Stock Market

Dubai’s bourse fell to its lowest close in nearly two years yesterday as investors prepared for Air Arabia’s share sale and Emaar Properties extended a fall on disappointment over its dividend.

Oman’s stock market erased all of its 2007 gains, falling to its lowest level in almost 11 weeks, weighed by a global stock market tumble.The Dubai index closed 1.33% down at 3,960.12 points, its lowest close since April 7, 2005.“Liquidity is leaving the market to prepare for the new IPO of Air Arabia,” said Wadah al-Taha, head of strategy and business development at Emaar Financial Services.Air Arabia, owned by the UAE emirate of Sharjah, aims to raise 2.57bn dirhams ($700.1mn) by selling new shares at 1 dirham each in the March 18-27 initial public offering and share sale.“Most investors think they can get good compensation from the IPO when shares list in the coming months,” Taha said.

Emaar fell 3.28%, extending its drop on Monday after investors were disappointed by its 2006 dividend.“With the mood today, reflected in aggressive selling and large volumes, we expect Emaar to continue to fall,” said Mohamed Alami, relationship manager in the dealing room of Naeem Shares & Bonds.

Oman’s index also fell sharply, tracking declines across global stock markets.The index dropped 1.64% to 5,565.95 points, its lowest close since December 26.

Abu Dhabi’s bourse index fell to a near one-month low, and Bahrain’s index closed lower for a fourth consecutive day.Kuwait’s bourse index led regional gainers, adding 0.96% to end above 10,000 points for the first time in two months.The Saudi index, the Gulf’s best performer this year, closed up 0.48%.