DFM Suffers Biggest Fall in Over Two Years

DUBAI — The Dubai Financial Market on Sunday witnessed its biggest fall in over two years, ignoring proposed merger talks between two of the UAE’s leading mortgage lenders, on lingering investors’ concerns about the global financial crisis and it’s possible impact on the Gulf region.

The Dubai’s stock benchmark index fell 283.36 points, or 6.7 per cent, to end the session at 3,844.27 points, it’s biggest decline since March 14, 2006 when the key index slid 11.4 per cent to 5,072.97 points. The Abu Dhabi Securities Exchange’s (ADI) General Index slid 186.88 points, or 4.72 per cent, to 3,769.84. The real estate sector was the major decliner in both markets with a fall of 11 per cent and 9 per cent at DFM and ADI, respectively after the markets ignored the proposed merger of Dubai-based mortgage lenders Amlak Finance and Tamweel. Shares in both the companies declined on the first day of the trading after Eid holidays. Amlak fell 3.9 per cent to Dh3.17 while Tamweel 7.36 per cent to close at Dh3.52. Emaar Properties, the Middle East’s biggest real-estate developer, tumbled 12.3 per cent to Dh6.8 after the firm said it plans to build a $7.2 billion joint-venture project with Al Shoala Group in Saudi Arabia.