Dubai Shares Snap Two-Day Advance After U.S. Fed Warns of Economic Risks - Bloomberg

Dubai’s benchmark stock index fell the most in more than a week after the U.S. Federal Reserve signaled “significant downside risks” to the world’s largest economy. Crude oil retreated.

Emaar Properties PJSC (EMAAR), developer of the world’s tallest skyscraper, decreased 1.1 percent and Emirates Integrated Telecommunications Co. (DU) dropped to a month low. The DFM General Index (DFMGI) slipped 0.8 percent, the most since Sept. 12, to 1,460.29 at the 2 p.m. close in Dubai. The index fell 0.5 percent this week. About 69 million shares traded in Dubai today, compared with this year’s daily average of 114 million shares, according to data compiled by Bloomberg.

“Local markets are reacting to the U.S. selloff yesterday and today’s continued selloff in Asia and Europe,” said Saad al Chalabi, an institutional trader at Al Ramz Securities in Abu Dhabi. “This is mostly due to the lack of liquidity and subdued market participation from foreign institutions.”

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