Discontent caused after a delay on a possible index upgrade and the fall of Egypt’s bourse after the government turned down a $3bn IMF financing package, Dubai’s benchmark slipped 1.1% to its lowest close since March 22.
This extended losses since index compiler MSCI postponed to December, a decision on whether to upgrade the UAE and Qatar indexes to emerging market status.
Fall of Brent crude prices by 2 per cent after the International Energy Agency, which represents 28 oil-importing nations, announced the release of 60 million barrels of oil from strategic stockpiles. Dubai's market fell to its lowest point in three months as investors tracked a slump across international equities and a drop in oil prices.
Musa Haddad, head of Mena equity desk at National Bank of Abu Dhabi said, “Volumes are relatively high on the selling side, so the market is in a consolidation phase,” Most Dubai stocks dropped, the Bellwether Emaar Properties fell 2%, Dubai Financial Market eased 1.7% and Arabtec lost 2.4%. Emirates NBD bucked the downbeat trend, rising 0.7% after Sheikh Ahmed bin Saeed al-Maktoum became the bank’s chairman.
The Dubai Financial Market General Index retreated more than 1 per cent to 1,521.15 points, while the Abu Dhabi Securities Exchange General Index ended flat.