Sunday 17 January 2010

Dubai Has Longest Losing Streak Since March on Debt Concern

Dubai’s index dropped for a sixth day, the longest losing streak since March, on concern that Dubai World may have trouble restructuring its debt and in anticipation of fourth-quarter earnings.

Emaar Properties PJSC, the United Arab Emirates’ biggest developer, and Dubai Financial Market, the only Gulf Arab stock market to sell shares to the public, slid to their lowest levels in more than a month. Al-Rajhi Bank, Saudi Arabia’s largest lender, dropped for the first time in three days after fourth- quarter earnings fell short of analysts’ expectations. The DFM General Index retreated 1.3 percent to 1,685.30 at 12:31 p.m. in Dubai. Abu Dhabi’s gauge lost 0.8 percent and Qatar DSM 20 Index declined 2.1 percent to 6,707.75, the lowest level since Dec. 2.

“The U.A.E. should remain rangebound until fourth-quarter earnings at which point we should begin to differentiate between stocks,” said Ali Khan, head of cash-equity trading at Dubai- based Arqaam Capital Ltd. “Possible headline risk from Dubai World restructuring continues to weigh on the market.”

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