Wednesday, 20 October 2010

Dubai Shares Drop to Two-Week Low on China Interest Rates, Recovery Risk - Bloomberg

Dubai shares dropped to the lowest level in almost two weeks, leading a decline in Persian Gulf markets, after China unexpectedly raised interest rates, stoking concern policy tightening may slow the global economic recovery.

Emaar Properties PJSC, builder of the world’s tallest skyscraper, led the drop and Dubai Islamic Bank lost 1.7 percent. The DFM General Index retreated 1.2 percent to 1,724.17, the lowest intraday level since Oct. 10, at 11:21 a.m. in Dubai, trimming gains in the second half to 18 percent. Abu Dhabi’s index fell the most in more than two months, slipping 1 percent after Emirates Telecommunications Corp. said third- quarter profit dropped 23 percent. The Bloomberg GCC 200 Index declined 0.3 percent.

“A paucity of any independent United Arab Emirates drivers means the DFM and ADX remain hitched to global markets,” said Julian Bruce, director of equity sales at EFG-Hermes Holding SAE in Dubai.

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