Sunday 15 April 2012

Dubai Shares Set for Biggest Drop in Week on Europe Debt Concern - Businessweek

Dubai’s benchmark stock index headed toward the biggest drop in a week as investor concern over Europe’s debt crisis intensified and economic reports in China and the U.S. missed estimates. Oil retreated in New York.

Arabtec Holding Co. (ARTC), the United Arab Emirates construction company whose shares have rallied 114 percent this year, declined 1.5 percent. Dubai Islamic Bank PJSC (DIB), the U.A.E.’s biggest bank complying with Shariah rules, fell for the first time in three days. The DFM General Index (DFMGI) decreased 0.6 percent, headed for the biggest drop since April 9, to 1,669.49 at 11:07 a.m. in Dubai. Saudi Arabia’s Tadawul All Share Index (SASEIDX) yesterday slid 0.7 percent.

“Investors are cautious today on worries that Europe’s sovereign debt crisis is back to the forefront,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. Drops in the U.S. stock market last week and in Saudi Arabia yesterday are “keeping investors on the sidelines,” he said.

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