Real estate stocks weigh on Dubai index

The Dubai stock market fell sharply yesterday to post its biggest one-day loss since June as real estate stocks slid, while tumbling oil prices dragged down all major Arabian Gulf bourses.

Oil prices fell 4 per cent after reports of swelling inventories and forecasts of record US and Russian output combined with a sharp sell-off in stock markets as the outlook for global growth deteriorated.

In Dubai, the index dropped 2.1 per cent with the emirate’s largest lender, Emirates NBD, shedding 4.6 per cent and its biggest listed developer, Emaar Properties , falling 2.3 per cent.

Damac Properties plunged 6.3 per cent to its lowest level since February 2015. Dubai inflation data released on Monday showed housing and utility costs falling 4.7 per cent year-on-year, their biggest decline in years.

Nasdaq-Dubai listed DP World was down 0.8 per cent. The company approached an Indian court to quash an antitrust investigation into its alleged anti-competitive behaviour at the country’s largest container port in Mumbai, Reuters reported.

Dubai’s main index is the worst performing in the Middle East and North Africa this year, down more than 25 per cent and close to its lowest levels since 2013.

Egypt’s blue-chip index fell 0.7 per cent, mirroring a slide in emerging markets generally. Banks continued to decline with Egypt’s largest lender, Commercial International Bank, shedding 0.6 per cent.

Arab Cotton Ginning lost 3 per cent after its first-quarter profit dropped over 96 per cent.

The Abu Dhabi index slipped 0.8 per cent with First Abu Dhabi Bank, the UAE’s biggest lender, falling 1.3 per cent. Eight staff have been cut by FAB Securities, a unit of First Abu Dhabi, sources said.

Abu Dhabi National Energy Company slumped 9.1 per cent to its lowest level since April 2018.

Dana Gas added 1.9 per cent after saying it had received $20 million from the Egyptian government.

The company’s total receipts from Egypt reached $152 million for the year.

The Saudi Arabian index lost 0.3 per cent with the largest lender, National Commercial Bank, dropping 2.1 per cent and Yanbu National Petrochemicals slipping 2.4 per cent.