Dubai Stock Index Falls 4.2 Percent

DUBAI, 6 July 2005 — The Dubai stock market index fell 4.2 percent yesterday amid fears that an overvalued market could be set for a correction, brokers said. The bourse index closed at 1,018 points, 10.6 percent below its record high a week ago. The market climbed 148 percent in the first half of the year. “The fall is an indicator that this market is going to go to fundamentals,” said Seif Fekri, head of the Dubai brokerage of investment bank EFG-Hermes. Dubai’s sister bourse in the capital Abu Dhabi also fell 3.6 percent yesterday to 5,881 points.