DFM crashes 5.5% and ADX down 2.5% as euphoria turns into a rush to the exit « ArabianMoney

DFM crashes 5.5% and ADX down 2.5% as euphoria turns into a rush to the exit « ArabianMoney:



"The Dubai Financial Market tumbled 5.5 per cent today as euphoria over the economic outlook turned into a rush to the exit and cash out profits. At the weekend ArabianMoney warned that the market was on an unsustainable high. The Abu Dhabi Securities Exchange also slumped by 2.5 per cent.



Nobody really questions the strong economic outlook for the United Arab Emirates where high oil revenues underpin a secure federation whose diversification is widely seen as a model for the region. It is is simply a question of whether a 60 per cent surge in DFM equity values this year is justified by five per cent or so GDP growth, and that on top of a more than doubling of the DFM last year."



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