Dubai index falls as volumes slump
Dubai's index ends lower after gaining for two sessions as volumes slump to a three-week low.
Dubai Financial Market heads losers, falling 1.5 per cent to 1.95 dirhams after Shuaa Capital slashed its price target on the stock to 1.20 dirham from 1.58 dirham.
Arabtec falls 1.5 per cent as the April 16 deadline for due diligence on its 70 per cent stake sale to Aabar Investments nears.
Emaar Properties falls 0.7 per cent, slipping from Monday's 14-week high. The stock had surged on talk the developer was looking to sell a building in Dubai's Emaar Square currently leased to HSBC.
"Information on (the) sale of HSBC building is not correct," an Emaar spokesman says. "HSBC building is still owned by Emaar."
Dubai's index falls 0.7 per cent to 1,822 points, taking its losses to 3.1 per cent since hitting a 14-week high on March 28. It had surged following Dubai World's March 25 debt restructuring offer. Volumes fall to their lowest level since March 24.
"After the Dubai World offer, liquidity went through the roof as a lot of fast money entered the market," says a Dubai-based analyst who asked not to be identified.
"But the announcement did not trigger long-term money to come in and so the market was not able to sustain gains.
"We need more clarity on the debt restructuring, how long this process will take and whether other big Dubai companies will also restructure."
Abu Dhabi's index falls 0.2 per cent to 2,860 points as volumes slump to a six-week low. Aldar Properties and Sorouh Real Estate drop 1.3 and 1.2 per cent respectively.
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