Panic in UAE markets after Emaar falls to Dhs10
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Panic in UAE markets after Emaar falls to Dhs10

Panic in UAE markets after Emaar falls to Dhs10

A feeling of panic prevailed at the Dubai Financial Market today after Emaar continued its downward trend to drop to Dhs10 amid fears that the whole market might collapse if the shares break that barrier. A similar feeling of panic erupted at the Saudi market, which registered a sharp decline of 5% before closing down 4.3%. A mass decline has been witnessed today in Gulf markets; DFM fell by 0.44%, ADX by 0.25%, KSE by 0.54%, Doha by 0.35% and Bahrain by 0.10%. Muscat was the only winner today, going up by 0.29%.

    UAE: Dubai at a critical point, Shuaa jumps


    Fluctuations continued today in the UAE markets, coinciding with delays in announcing H1 profits for some listed firms.

    The announcement of profits is not expected to make a big difference, as was seen in Etisalat which posted a 37% increase in profits, but who's shares dropped by 0.25%.

    Pressure continued on DFM index after Emaar shares were pushed to a critical point amid fears that the price might fell below Dhs10.

    Emaar closed today after external forces intervened to keep its price above Dhs10, but declined by 0.50% closing at Dhs10.25.

    Emaar's decline has reflected negatively on other shares which posted record declines, including Air Arabia which fell by 4.2% to Dhs1.56, DFM shares fell 3.7% to Dhs4.66 and Ajman Bank 2.8% to Dhs3.37, despite trading Dhs634.5m out of Dhs1.6bn for the whole market.

    Shuaa Capital's decision to make GCC nationals equal to UAE citizens in owning the company's shares, led to a rise of 10% to Dhs7.53.

    ADX index fell after pressure came from the telecom, services and real estate sectors amid low trading value, which reached Dhs731m.

    Etisalat shares fell by 0.25% to Dhs20 despite a 37% increase in profits, which reached Dhs5bn.

    Saudi Arabia: Mass decline amid mounting fears


    The Saudi market has witnessed one of its worst declines, which included 118 listed shares fall against increases only three companies.

    Nineteen firms saw falls to the maximum limit of 10% especially in the insurance sector.

    Random selling among small traders erupted amid rumours that Sabic's profits had fallen.

    HSBC predicted that Sabic would post SR8bn H1 profits.

    Sabic share fell by 2.6% taking with it the whole petrochemical sector including Kayan which fell by 7.4%, Petrorabigh which fell by 5.3%, Al Mutaqadema by 5.4%, Sipchem by 8% and Safco by 3.1%.

    Banks and companies that announced profits were negatively affected by the general decline.

    Saudi French Bank fell by 4.5%, SABB by 3.5% despite posting a 25% increase in profits.

    Aljazira bank saw the worst decline by 10% after its profits fell by 25%.

    Kuwait: Index pays the price


    The Kuwait Stock Exchange suffered from the ongoing correctional wave that made the market lose all gains achieved in the last two months.

    All sectors, except for food and insurance, saw a decline.

    Profits posted by leading banks failed to stop the decline, including the Kuwait Commercial Bank which saw a rise in profits by 15.7% to KD70.5m from KD60.9m, but the share closed unchanged at KD1.380.

    United Gulf Bank shares declined by 4.8% after the bank announced the sale of its stake in Jordan Kuwait bank to Burgan bank, which now owns 51.1%. Despite this Burgan shares closed unchanged at KD0.970.
    Kuwaiti analysts have said that the market is paying a heavy price for previous rises, which lasted for 10 sessions.

    Doha and Bahrain: Bank shares lead the decline


    Banking and investment shares led the decline on Doha's market with pressure from foreign portfolios, who continue to sell shares.

    Naqilat, Al Rayan, and United for Development dominated 90% of the total trading which reached 7.7m shares.

    United for Development closed up 7.2% following a 89.7% rise in profits, while Naqilat fell by 1.3% and Al Rayan by 0.93%.

    Bahrain's market fell slightly today by 0.10% with pressure coming from banks, investments and hotel shares.

    Al Salam and Gulf Commercial dominated 71% of trading out of 4.8m traded shares.

    Al Salam closed unchanged, while Gulf Commercial rose by 1.8%.

    Muscat: The only winner


    Muscat market was the only winner today after Muscat Bank traded 3.5m shares out of total shares of 14.4m but still closed unchanged.

    Omantel also traded OR1m which pushed the index up 0.21%.

    Al Anwar Holding rose by 2.6% trading OR2.3m.

    Author
    AMEinfo Staff

    AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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