Sunday 22 November 2009

U.A.E. Shares Tumble to 2-Month Low on Drop in Volumes, Shakeup

United Arab Emirates shares tumbled to their lowest close in more than two months as volumes fell ahead of the Islamic holiday and Dubai’s ruler demoted some of the emirate’s most prominent executives.

Emaar Properties PJSC, the U.A.E.’s largest property developer, dropped to its lowest in more than two weeks and First Gulf Bank PJSC fell the most since Nov. 1. The Dubai Financial Market General Index lost 2.6 percent to 2,073.66, the lowest level since Sept. 15. Abu Dhabi’s index slid 2 percent to 2,865.25, the lowest since Sept. 2. About 188 million shares traded in Dubai’s index today, or 45 percent of the three-month daily average, according to data compiled by Bloomberg.

“We saw volumes fall much lower today because of the holidays coming up,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi. “We saw investors exercise caution today because they are not sure why the decision to shuffle the executives came now.”

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