Dubai falls to 21-week low on Egypt worries
Dubai, January 31, 2011
Dubai's index slumped to fresh 21-week lows, falling 0.6 per cent to 1,534 points, its lowest finish since September 2 giving back early gains to extend a slump sparked by unrest convulsing Egypt.
UAE's largest developer Emaar Properties, which has 17 per cent of its effective land bank in Egypt, fell 1.9 per cent, said Roy Cherry, Shuaa Capital vice-president for research.
Contractor Drake & Scull fell 1.5 per cent, having been up as much as 4 per cent intraday, while builder Arabtec dropped 1.2 per cent. Both firms are active in Egypt.
"Egypt is at the centre of everybody's radar and the market is trying to find a level that makes sense for what is happening in Egypt and the ramifications for the region," said Tarik Lotfy, Arqaam Capital head of Mena equities.
"When you get a down day like yesterday, invariably some people will come in for some bottom fishing and take advantage of a short-term move, which is what happened at the open, but most investors are cautious, so there wasn't much follow through," adds Lotfy.
"Yesterday was an impulse reaction to Egypt, with international and institutional (players) preferring to sell and then sit on the sidelines to see things play out."
In the UAE capital, Etisalat climbed 2.5 per cent, helping Abu Dhabi's index rise one per cent to 2,587 points and ease away from Sunday's 21-week low.-Reuters