Dubai Shares Sink to Lowest in 11 Months as OPEC Cuts Forecast - Bloomberg

Dubai Shares Sink to Lowest in 11 Months as OPEC Cuts Forecast - Bloomberg:



"Dubai stocks retreated to the lowest since January following global equities lower after OPEC reduced its estimate for 2015 oil demand and crude prices extended a slump.



The DFM General Index (DFMGI) dropped 6.6 percent at 11:48 a.m. local time to 3,628.09, the weakest since Jan. 20, bringing its decline so far this week to 13 percent, the worst since October. Emaar Properties PJSC (EMAAR), the real estate developer that accounts for almost 18 percent of the gauge, slipped to the lowest level since February. The ADX General Index in neighboring Abu Dhabi, home to almost 6 percent of the world’s proven oil reserves, sank 4 percent to the weakest in 11 months.



“We are highly correlated at least psychologically with the international markets, especially the reaction towards oil price,” Wadah Al Taha, chief investment officer at Al Zarooni Group, said by telephone. “We will probably head down further in the next few sessions. Some foreigners may be exiting the market, probably selecting other attractive emerging markets that may benefit from a decline in oil prices.”"



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