DFM General Index Lost Nearly 2 Percent


Dubai’s benchmark stock index headed for another big slump  today. Asian markets are broadly lower amid an emerging-market rout after China signaled it will maintain efforts to curb credit. In addition, last week’s comments about the U.S. Federal Reserve halting its stimulus program added to market participants’ negative sentiment.

The DFM General Index lost over 2 percent to close at 2,256 points. Abu Dhabi’s ADX General Index retreated 1.2 percent.

The both UAE bourses had a stupendous year-to-date performance and correction is a normal event. However, if this is a temporary correction or the beginning of longer term action, it is not yet clear. Usually, many market participants withdraw from from the markets in May. By the end of June and two weeks ahead of Ramadan, investors tend to slow down in the Middle East. Normal activity may return to the markets by the end of September or even in the beginning of October.

All together, the emerging-market stocks tumbled to a one-year low, with the MSCI Emerging Markets Index falling 1.4 percent. China’s stocks lost the most in four years after the central bank signaled it will maintain efforts to curb speculative lending and Goldman Sachs said a cash squeeze is hurting growth.

Dubai’s measure has retreated 6.6 percent in the last three days, trimming the 2013 gain to 38 percent. Emaar Properties PJSC (EMAAR), the market leader, fell 2.6 percent, while Dubai Investments PJSC slid the most since May 2012.

Abu Dhabi’s benchmark is up 34 percent this year.

Elsewhere in the Middle East, Saudi Arabia’s Tadawul All Share Index (SASEIDX) fell 1 percent. Oman’s MSM30 Index dropped 0.8 percent, Kuwait’s index declined 1.5 percent, Bahrain’s lost 0.4 percent and Qatar’s QE Index retreated 0.5 percent.


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