Stocks fall after gloomy forecast

Dubai shares fell the most in more than seven months and Abu Dhabi’s benchmark index had its biggest drop since January Tuesday after the World Bank said the global recession would be deeper than expected.

Banking stocks led the declines with the Emirates NBD, the UAE’s largest lender, falling 4.6 per cent. The Dubai Islamic Bank (DIB) shed 6.5 per cent.

Property stocks also suffered major declines as Emaar Properties, the developer of the world’s tallest tower, lost 8.8 per cent.

“Declines were correlated to what has been happening in the global scene with regard to the price of oil and the tumbling of global stocks,” said Ayman el Saheb, the director of operations at Darahem Financial Brokerage.