By Zahra Hankir - Nov 27, 2011 5:46 PM GMT+0700
Abu Dhabi’s shares fell for a 10th day as political turmoil in Egypt and Syria intensified and on concern Europe’s debt crisis may spread. Oil declined for a second week.
National Bank of Abu Dhabi PJSC (NBAD), the United Arab Emirates second-biggest by assets, dropped 1 percent. Abu Dhabi Islamic Bank PJSC, the country’s second-largest Shariah-compliant bank, retreated to the lowest since May 31. Abu Dhabi’s ADX General Index (ADSMI) decreased to the lowest since March 2009, declined 0.1 percent to 2,416.04 at the 2 p.m. close in the emirate. Dubai’s DFM General Index (DFMGI) fell 0.4 percent. About 29 million shares traded, compared with a 12-month daily average of 63 million.
Global stocks fell last week, with the STOXX Europe 600 Index tumbling 4.6 percent, after the cost of insuring European sovereign bonds against default rose to a record and Germany failed to find buyers for 35 percent of the bonds offered at an auction. Emerging market stocks (MXEF) sank 6.1 percent on speculation that Japan may face a credit-rating cut and evidence that China’s factory output may have contracted.
“In addition to the euro-zone worries and an economic slowdown in China, developing regional political uncertainties are keeping sentiments fragile,” said Tariq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital.
Defusing Unrest
In Egypt, the ruling military council is seeking to form an interim government to defuse unrest that erupted on Nov. 19. One person died in clashes with police yesterday, state media reported, bringing the official death toll in the past week to 39. Meanwhile, Arab foreign ministers will meet today to discuss possible sanctions against Syria after it missed a deadline to allow monitors to enter the country.
The Bloomberg GCC 200 Index (BGCC200), little changed at 2:08 p.m. in Dubai today, has dropped 12 percent so far this year, while the Dow Jones Industrial Average has lost 3 percent and the STOXX Europe 600 has tumbled 20 percent.
Crude for January delivery retreated 0.9 percent last week to $96.77 a barrel on the New York Mercantile Exchange. Abu Dhabi holds about 7 percent of the world’s proven oil reserves.
National Bank of Abu Dhabi decreased to 10.05 dirhams, the lowest level since Oct. 25, and Abu Dhabi Islamic fell 1.6 percent to 3.13 dirhams.
Qatar’s QE Index (DSM) fell 0.1 percent and Saudi Arabia’s Tadawul All Share Index gained 0.1 percent. Markets in Egypt, Oman, Bahrain and Kuwait are closed for an Islamic holiday.
To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
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