Dubai Stocks Extend Rout With Biggest Drop Since August - Bloomberg

Dubai Stocks Extend Rout With Biggest Drop Since August - Bloomberg:



"Dubai stocks slumped as turmoil at the United Arab Emirates’ largest-listed builder, Arabtec Holding Co. (ARTC), prompted the biggest selloff in 10 months. 




The DFM General Index fell 6.7 percent, the most since August, to 4,009.01 at the close in the emirate as 12 stocks lost more than 9 percent, amid speculation leveraged traders are liquidating positions. The index entered a bear market yesterday after falling 20 percent from a May 6 peak. Arabtec dropped 9.8 percent to the lowest since January after the company confirmed it cut staff.



“Selling pressure on Arabtec is causing margin calls on retail investor accounts, hence the big move down across the U.A.E. as a whole,” Nayal Khan, head of institutional sales and trading at the Naeem Holding brokerage in Dubai, said by e-mail."



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