Amwal Al Ghad English - 2013-06-23 14:10:41
Dubai’s benchmark stock index tumbled the most in more than a year, led by Emaar Properties PJSC, as concern the U.S. may reduce fiscal stimulus prompted a selloff in emerging markets.
Emaar, the builder of the world’s tallest skyscraper, declined to the lowest in two months and Dubai Financial Market, the Persian Gulf’s only publicly traded stock market, slumped 5.8 percent. The DFM General Index retreated 2.6 percent, the most since March 2012, to 2,299.78 at the close in Dubai. Abu Dhabi’s ADX General Index lost 1.9 percent, the most since Dec. 11.
Emerging market stocks last week tumbled 5.6 percent, the most in 13 months, as Federal Reserve Chairmen Ben S. Bernanke said June 19 that the U.S. may halt bond purchases by mid-2014. China’s manufacturing is shrinking at a faster pace this month, adding to stresses in the economy and financial system after interbank borrowing costs surged.
“Market sentiment is being negatively affected by what’s happening worldwide, especially in emerging-market countries,” Talal Touqan, head of research at Al Ramz Securities LLC, said by phone. “Chinese manufacturing data and news from the U.S. Federal Reserve means sentiment and institutional presence will both be weak in the coming few weeks at least.” More»