Complex Made Simple

Dubai market plummets on flat HSCB UAE Purchasing Managers’ Index

The Dubai Financial Market General Index failed to crack the 2,600 resistance barrier in the first hours of trading and eventually closed 3.72% lower at 2,489.38 points on Tuesday. Three shares advanced, while 25 declined in value. Earlier in the day, the seasonally adjusted HSBC United Arab Emirates PMI™ – a composite indicator designed to provide a single-figure snapshot of the performance of the non-oil private sector – was released, showing the gauge stood at 54.5 in August, unchanged from July's reading. An HSBC UAE PMI index above 50 indicates an expanding economy and vice versa. Nevertheless, HSCB said that the job market was expanding and that inflationary pressure remained low. Shares of Islamic financial institution Ajmanbank and Shuaa Capital gained 1% and 0.70%, respectively. Union Properties, Dubai's second developer dived 5.46%, while market bellwether Emaar plummeted 5.43% to Dhs5.57. Trading volumes reached a record of 1.4bn shares being traded, valued at Dhs1.4bn.