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Shares track losses in global markets

DUBAI - UAE shares yesterday tracked losses in global markets, with the benchmark stock index in Dubai dropping 0.5 per cent to close at 5,292.99 and the Abu Dhabi bourse sliding 0.3 per cent at 4,940.08 points.

Air Arabia, the country's budget carrier based in Sharjah, was the biggest loser in Dubai with a fall of 4.3 per cent to Dh1.56 followed by the first Gulf Arab stock market to sell its shares to the public, Dubai Financial Market, which slumped 3.7 per cent to Dh4.66.

The other big losers were the Middle East's largest courier service, Aramex, which plummeted 3.3 per cent to Dh2.35; Commercial Bank of Dubai, which decreased three per cent to Dh9.60 and Ajman Bank with a drop of 2.9 per cent to Dh3.37.

Shuaa Capital, the largest investment bank in the UAE, jumped 15 per cent to Dh7.53 following an announcement that other citizens in the Gulf region would be given the same treatment accorded to UAE nationals in terms of stock ownership. The change in rule also means that foreign investors can now own 49 per cent of Shuaa's equity.

About 398 million shares valued at Dh1.65 billion traded on DFM compared with the 50-day average of Dh1.12 billion based on Bloomberg's estimate. Shares value on the Abu Dhabi Securities Exchange (ADX) reached Dh731.1 million compared with the 50-day average of Dh1.46 billion.

"The drops in global markets are affecting sentiment in the Gulf," said Hiba Azar, a senior broker at Shaheen Financial Brokers, in a Bloomberg report. "However, this will be momentary since fundamentals here remain strong."

European and Asian stocks fell on continued concern over losses in the credit market that could derail growth. Fears of further bank failures also sent financial shares in the US to their lowest in almost 10 years.

Gulf Cement Co dropped 4.2 per cent to Dh5.71 on ADX following reports that a cement shortage in the UAE triggered a 60-per cent increase in prices above the government-fixed price ceiling. jose@khaleejtimes.com