Dubai stocks suffer biggest one-day fall in two month

Dubai: Arabian Gulf shares fell on concern that a possible recession in the US will deter investments in the region and as investors await first-quarter results. Dubai’s main index dropped almost three per cent, posting its sharpest one-day decline in two months, to 5,248.88 led by Emaar Properties and Dubai Financial Market Co (DFM). Abu Dhabi’s main benchmark declined 1.34 per cent to 4,602.56. Saudi Arabia’s Index slid for a third day as shareholders boosted cash reserves to fund their subscription to Inmaa Bank’s 10.1 billion riyal initial public offering, the kingdom’s largest in five years. Sorouh Real Estate Co closed at its lowest in two months after founding members were cleared to sell their shares in the company. Dubai Investments PJSC declined for a fifth day as the company started a joint venture. Saudi Basic Industries Corp slid for a third day. Main losers Emaar and DFM shed 3.56 per cent and 6.64 per cent, respectively. In Abu Dhabi, Emirates Telecommunications Corp (etisalat) and Sorouh Real Estate lost 1.43 per cent and 5.46 per cent, respectively. “We are not seeing a lot of fresh capital being injected into the market,” said Blair Look, head of asset management at Al Mal Securities, in a telephone interview from Dubai. Dubai Financial Market PJSC said foreign investors bought Dh2.095 billion of shares last week, almost as much as the 2.007 billion they sold. Sorouh retreated 5.5 per cent to Dh8.14, its lowest close since January 31. Dubai Investments fell 3.7 per cent to Dh5, bringing the five-day slump to 11 per cent. Saudi Arabia’s Tadawul All Share Index retreated 1.3 per cent, bringing the three-day fall to 4.8 per cent. The Muscat Securities Market 30 Index retreated 0.9 per cent, falling for a seventh day. The Kuwait Stock Exchange Index lost less than 0.1 per cent. The Bahrain All Share Index added 0.5 per cent, snapping four days of declines, while Qatar’s Doha Securities Market Index was unchanged. Source: Bloomberg