Dubai Shares Drop Most Since June on Greece, China; Qatar Falls
Dubai’s shares fell the most in more than seven weeks on concern Greece won’t fulfill its bailout commitments and after a policy maker in China warned of cooling economic growth.
Arabtec Holding (ARTC) PJSC, the biggest builder in the United Arab Emirates by market value, fell 2.4 percent. Deyaar Development (DEYAAR) PJSC, a Dubai-based property developer, retreated for a third day. The DFM General Index lost 1.5 percent, the most since June 3, to 1,493.36 at the close in Dubai. The measure rallied 3 percent last week. Qatar’s QE Index declined 0.2 percent. The Bloomberg GCC 200 Index (BGCC200) of the region’s stocks fell 0.7 percent.
“The modest rally we’ve seen in the United Arab Emirates over the past couple of weeks is already under threat,” said Julian Bruce, the Dubai-based director of institutional sales trading at EFG-Hermes Holding SAE. “For the uptrend to be maintained, typical Ramadan apathy exhibited by locals would have to be compensated for by increased western institutional interest but against the current backdrop that would seem to be a big ask.”
Greece’s creditors convene this week amid doubts that the country will meet its bailout commitments. German Vice Chancellor Philipp Roesler said he’s “very skeptical” that European leaders will be able to rescue Greece. The troika of international creditors -- the European Commission, the European Central Bank and the International Monetary Fund -- will arrive in Athens tomorrow. The Stoxx Europe 600 Index fell 2.6 percent at 2:29 p.m. in London.
China’s economic expansion may cool for a seventh quarter to 7.4 percent in the three months to September, said Song Guoqing, a member of the People’s Bank of China monetary policy committee. Crude for September delivery fell as much as 3.8 percent to $88.01 a barrel in New York. Gulf Arab oil exporters, including the U.A.E. and Saudi Arabia (SABIC), supply about a fifth of the world’s oil.
About 67 million shares traded in Dubai today, compared with a 12-month daily average of about 139 million shares. Yesterday, about 30 million shares traded, the least since Jan. 2, according to data on Bloomberg. The Islamic holy month of Ramadan, when Muslims fast from sunrise to sunset and business activity slows, started over the weekend.
Arabtec dropped the most since June 3 to 2.88 dirhams. Deyaar slipped 2.2 percent to 31.1 fils, the lowest since July 16.
Bahrain’s measure and Abu Dhabi’s ADX General Index (ADSMI) slipped 0.1 percent, while the Kuwait Stock Exchange Unweighted Index (KWSEIDX) fell 0.5 percent. Saudi Arabia’s Tadawul All Share Index (SASEIDX) dropped 0.9 percent. Oman’s stock market was closed for a holiday.
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