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Sunday, 24 January 2010

Dubai Index Leads Gulf Shares Lower on Obama Bank Plan, Oil

Dubai’s index lost the most in a month, leading Gulf markets lower, after U.S. stocks fell on a White House proposal to limit financial risk and as China moved to cool economic growth. Oil closed at a one-month low.

Shuaa Capital PSC, the United Arab Emirates’ biggest investment bank, slumped to its lowest intraday level since May. United Development Co., the Qatari developer building man-made islands off the Qatari coast, retreated to the lowest in almost two months after profit declined. The DFM General Index fell 3.9 percent, the most since Dec. 23, to 1,587.38 at 12:48 p.m. in the emirate. Qatar’s gauge lost 1.7 percent. Crude closed down 2 percent at $74.54 a barrel on Jan. 22.

“Friday’s declining oil prices and U.S. equities have had an impact, the Gulf always overreacts to U.S. equities downside,” said Mohamed Abu Ghoush, head of equity brokerage at Al-Ahli Bank in Doha, Qatar. “Markets are still waiting for the 2009 results.”