DUBAI: Most Gulf Arab bourses declined yesterday as investors worried about the impact of a global economic slowdown on the region, with property stocks in the United Arab Emirates among the hardest hit.
Dubai’s Emaar Properties plunged 6.53 percent, while Union Properties and mortgage lender Tamweel plummeted 7.34 percent and 6.1 percent respectively.
“There is a new wave of fear hitting the UAE real estate sector, particularly in Dubai, as people are worried about problems facing second and third-tier developers. This is affecting the whole sector,” said Mohammed Yasin, managing director at Shuaa Securities.
Cutbacks by banks on project financing in the region due to the global credit crisis was contributing to fears about the sector’s health, Yasin said.
In Abu Dhabi, with Sorouh Real Estate and Arkan Building Materials slipped 7.89 percent and 8.27 percent respectively. Worries about the global economic outlook also hit the bourses of Qatar and Saudi Arabia, with investors worried about the impact of the crisis on company profits.
The Doha benchmark slipped more than 3 percent, with Industries Qatar leading losses, ending 5.37 percent lower. “Everyone is selling the stock because they are worried the company will not be able to match its profits from last year,” said Samer Al-Jaouni, general manager at Middle East Financial Brokerage.
“Sentiment is very low due to what is happening in Europe and the United States,” he added. The Saudi benchmark fell more than one percent, weighed by Saudi Basic Industries Corp, which ended 2.57 percent down after saying it expected its fourth-quarter earnings to be hit by a rapid slide in prices and a slowdown in demand due to the global financial crisis.
The main index slipped 1.2 percent to 5,766 points. Samba Financial Group and Banque Saudi Fransi lost 3.36 percent and 5.34 percent respectively.
In Kuwait, the benchmark declined 1.57 percent to 9,256 points. National Bank of Kuwait and Al-Ahli Bank end 2.74 percent and 3.53 percent lower. “Investors are worried about the remaining third-quarter results, as according to our estimates they are going to be very bad,” said Naser Al-Nafisi, general manager at Al-Joman Center for Economic Consultancy.
