DFM and ADSM drop over 2pc on talk of revaluation
Shares in Dubai and Abu Dhabi dropped over two per cent each yesterday amidst speculations that the Arabian Gulf states may revalue their currencies and move away from the dollar peg to a currency basket.
Paced by Emaar Properties, Aldar Properties and Emirates Telecommunications Corp, or Etisalat, the UAE shares decreased 2.3 per cent to 5,243.17 in Dubai and declined 2.5 per cent to 4,1.1.30 in Abu Dhabi.
Analysts said foreign investors are selling heavily because they expect a revaluation of the dirham. The Gulf Cooperation Council members of Saudi Arabia, Bahrain, Kuwait, the UAE, Qatar and Oman are expected to propose a revaluation of their currencies during the Doha Summit, on December 3-4.
Except for Kuwait, which untangled its dinar from the greenback in May, the other GCC states have their currencies pegged to the dollar. The latter have been undergoing pressures to revalue their currencies and move to a currency basket due to the falling dollar.
The US dollar has dropped 16 per cent this year against a basket of major currencies, and 44 per cent against the euro since 2000. The falling dollar has prompted a rise in import inflation.
The largest publicly traded real estate developer in the Middle East, Emaar, slipped 4.3 per cent from Dh12.70 to Dh12.15 while Abu Dhabi-based property developer Aldar slumped 0.5 per cent to Dh9.28 and Etisalat, the UAE's first telecom provider, slid 2.6 per cent to Dh21.
Al Madina Finance and Investment fell 9.7 per cent from Dh9.97 to Dh9, leading the losers on the Dubai Financial Market (DFM) General Index while Arab Insurance Group was the biggest gainer with a rise of 5.2 per cent from Dh3.47 to Dh3.65.
The volume of shares on DFM was valued at almost Dh2 billion. Twenty-one of the 29 companies that traded had declined and only five had advanced.
Abu Dhabi National Insurance Co led the losers at the Abu Dhabi Securities Market (ADSM) General Index with a fall of nine per cent to Dh8.20, followed by Fujairah Cement Industries, which slumped 8.6 per cent to Dh4.57.
National Marine Dredging Co had a reversal of fortune as it topped ADSM with a jump of 8.3 per cent to Dh6. It was the biggest loser on Monday with a fall of 8.6 per cent to Dh5.54. Source
Paced by Emaar Properties, Aldar Properties and Emirates Telecommunications Corp, or Etisalat, the UAE shares decreased 2.3 per cent to 5,243.17 in Dubai and declined 2.5 per cent to 4,1.1.30 in Abu Dhabi.
Analysts said foreign investors are selling heavily because they expect a revaluation of the dirham. The Gulf Cooperation Council members of Saudi Arabia, Bahrain, Kuwait, the UAE, Qatar and Oman are expected to propose a revaluation of their currencies during the Doha Summit, on December 3-4.
Except for Kuwait, which untangled its dinar from the greenback in May, the other GCC states have their currencies pegged to the dollar. The latter have been undergoing pressures to revalue their currencies and move to a currency basket due to the falling dollar.
The US dollar has dropped 16 per cent this year against a basket of major currencies, and 44 per cent against the euro since 2000. The falling dollar has prompted a rise in import inflation.
The largest publicly traded real estate developer in the Middle East, Emaar, slipped 4.3 per cent from Dh12.70 to Dh12.15 while Abu Dhabi-based property developer Aldar slumped 0.5 per cent to Dh9.28 and Etisalat, the UAE's first telecom provider, slid 2.6 per cent to Dh21.
Al Madina Finance and Investment fell 9.7 per cent from Dh9.97 to Dh9, leading the losers on the Dubai Financial Market (DFM) General Index while Arab Insurance Group was the biggest gainer with a rise of 5.2 per cent from Dh3.47 to Dh3.65.
The volume of shares on DFM was valued at almost Dh2 billion. Twenty-one of the 29 companies that traded had declined and only five had advanced.
Abu Dhabi National Insurance Co led the losers at the Abu Dhabi Securities Market (ADSM) General Index with a fall of nine per cent to Dh8.20, followed by Fujairah Cement Industries, which slumped 8.6 per cent to Dh4.57.
National Marine Dredging Co had a reversal of fortune as it topped ADSM with a jump of 8.3 per cent to Dh6. It was the biggest loser on Monday with a fall of 8.6 per cent to Dh5.54. Source
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