Monday 4 January 2010

Dubai Stocks Drop Most in World on Concern Gains Are Overdone

Dubai’s benchmark index declined the most in almost two weeks, led by Emaar Properties PJSC and Dubai Financial Market, on investor speculation that yesterday’s gains outpaced growth prospects in the debt-laden emirate.

Emaar, the developer of the world’s tallest tower that opens today, dropped 3.4 percent after surging the most in three weeks yesterday. DFM, the only Gulf bourse to sell shares to the public, fell the most since Dec. 29. Dubai’s DFM General Index lost 2.6 percent, the biggest retreat among global benchmark indexes tracked by Bloomberg, to 1,817.13. The measure jumped 3.4 percent yesterday.

“Its only natural to see profit-taking at the end of a few strong sessions,” said Ahmad Shahin, equity strategist at Shuaa Capital PSC in Dubai. “Stocks have been rallying mainly on positive sentiment related to the anticipation of the opening of the Burj Dubai.”

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