Stocks drop on concerns of US economic slowdown

DUBAI — The UAE markets dropped yesterday on concern that an economic slowdown in the US would affect growth in the Gulf region, with National Central Cooling Co (Tabreed) declining in Dubai as it announced plans to sell convertible trust certificates.

By A Staff Reporter (UAE Market)

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Published: Mon 14 Apr 2008, 9:57 AM

Last updated: Sun 5 Apr 2015, 11:39 AM

The Dubai Financial Market (DFM) General Index lost 11.19 points or 0.2 per cent to close at 5,441.45 while the Abu Dhabi Securities Market (ADSM) Index fell 0.5 per cent at 4,853.28 points.

Tabreed, which fell 0.8 per cent to Dh2.50, said its certificates, due by 2011 in the Middle East, Europe and Asia, would fund expansion projects. The UAE's budget carrier Air Arabia slumped 1.6 per cent to Dh1.88 while Emaar Properties, the largest publicly listed real estate developer in the Middle East and Africa, slipped 0.9 per cent to Dh11.

DFM Co, the first Gulf Arab stock market to sell shares to the public, lost 0.6 per cent to Dh5.15. It said in a statement that first-quarter net profit fell 44 per cent to Dh314 million, or Dh0.04 a share, from Dh563 million or Dh0.07 per share a year earlier. Its operating income almost tripled to Dh273 million from Dh100 million for the same period.

"The drop in the US is a bit worrying to investors here," said Alfred Fayek, who helps manage Dh7.3 ($2 billion) for EFG-Hermes Holding SAE, said in a Bloomberg report. "Expectations of earnings are not making much difference since prices of most stocks already factored in positive earnings."

The report said that US stocks had the highest three-week drop on April 11 after General Electric Co announced a decline in profit and consumer confidence fell to a record-low since the early days of Ronald Reagan's presidency.

Abu Dhabi Commercial Bank (ADCB) dropped one per cent to Dh6.75, its first loss on ADSM in four days. The third-biggest bank in the UAE by assets, ADCB may sell Dh4.8 billion of convertible bonds.

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