The Dubai bourse plunged 312.66 points or 5.3 per cent to close at 5,555.69 yesterday, its steepest decline in more than 14 months, following concerns that foreign investors may withdraw funds from the region to cover losses in the US. Shares in Abu Dhabi fell 1.6 per cent at 4,618.05 points.
"There are fears that institutional foreign investors are selling here to cover losses in the US," Mohammed Ali Yasin, managing director of Emirates Securities, told Bloomberg. "That may lead to more selling as retail investors tend to panic easily."
This was the biggest fall of the Dubai Financial Market (DFM) General Index since November 2006, although it has still gained 31 per cent since September 30.
Stocks in the Gulf region also made a retreat, led by financial shares including Dubai Islamic Bank, the biggest Shariah-compliant bank in the UAE.
US stocks dropped heavily last week, the biggest loss since July 2002, due to reinforced speculation that the economy was going into a recession.
UAE's second telecoms firm du, officially known as the Emirates Integrated Telecommunications Co, was the biggest loser in Dubai with a fall of 10.5 per cent from Dh6.50 to Dh5.95 followed by Islamic Arab Insurance, which slipped 10.1 per cent to Dh3.37.
The Middle East's only publicly traded stock exchange, DFM Co, was also a big loser with a decline of 9.5 per cent from Dh5.52 to Dh4.94 while the largest listed Islamic financing company Amlak Finance had a slide of nine per cent to Dh4.58.
Property financier Tamweel, which announced a four-fold fourth-quarter profit of Dh207 million on Sunday, was DFM's lone gainer with a rise of one per cent from Dh6.60 to Dh6.56.
Al Wathba Insurance Co led the losers on the Abu Dhabi Securities Market Index with a fall of 9.4 per cent to Dh6.95 followed by Bank of Sharjah, which decreased 6.9 per cent to Dh3.26, Gulf Pharmaceutical Co with a slump of 6.4 per cent to Dh2.48 and Aldar Properties, which declined 5.4 per cent to Dh10.50.
The gainers were led by Foodco Holding Co, which jumped 8.4 per cent to Dh4.40, and United Insurance Co with an advance of 7.4 per cent to Dh6.50. Source
"There are fears that institutional foreign investors are selling here to cover losses in the US," Mohammed Ali Yasin, managing director of Emirates Securities, told Bloomberg. "That may lead to more selling as retail investors tend to panic easily."
This was the biggest fall of the Dubai Financial Market (DFM) General Index since November 2006, although it has still gained 31 per cent since September 30.
Stocks in the Gulf region also made a retreat, led by financial shares including Dubai Islamic Bank, the biggest Shariah-compliant bank in the UAE.
US stocks dropped heavily last week, the biggest loss since July 2002, due to reinforced speculation that the economy was going into a recession.
UAE's second telecoms firm du, officially known as the Emirates Integrated Telecommunications Co, was the biggest loser in Dubai with a fall of 10.5 per cent from Dh6.50 to Dh5.95 followed by Islamic Arab Insurance, which slipped 10.1 per cent to Dh3.37.
The Middle East's only publicly traded stock exchange, DFM Co, was also a big loser with a decline of 9.5 per cent from Dh5.52 to Dh4.94 while the largest listed Islamic financing company Amlak Finance had a slide of nine per cent to Dh4.58.
Property financier Tamweel, which announced a four-fold fourth-quarter profit of Dh207 million on Sunday, was DFM's lone gainer with a rise of one per cent from Dh6.60 to Dh6.56.
Al Wathba Insurance Co led the losers on the Abu Dhabi Securities Market Index with a fall of 9.4 per cent to Dh6.95 followed by Bank of Sharjah, which decreased 6.9 per cent to Dh3.26, Gulf Pharmaceutical Co with a slump of 6.4 per cent to Dh2.48 and Aldar Properties, which declined 5.4 per cent to Dh10.50.
The gainers were led by Foodco Holding Co, which jumped 8.4 per cent to Dh4.40, and United Insurance Co with an advance of 7.4 per cent to Dh6.50. Source
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