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Dubai: UAE indices fell for the second straight day this week as selling pressure from foreign investors continued unabated in a bearish market.
"I think the most important factor is worldwide negative sentiment," said Amro Diab, head of GCC institutional sales, EFG-Hermes Bank.
"We are seeing stocks at very attractive valuations but we are not seeing any rebound in the market. And that's because people just don't want to enter when the mood in the market is down."
Sherif Abdul Khalek, manager, institutional accounts, Beltone Financial Securities agrees. "With the US already in recession as some analysts point out and with it looming in the UK, the sentiment across the globe is negative. Because foreign investors constitute almost 30 per cent of the trading volume, DFM in particular, is tied to the global currents and cannot but be affected by global sentiment."
"Of course margin calls by local and regional investment funds and foreign funds continue to force stock sales in an already falling market," added Abdul Khalek.
The Dubai Financial Market General Index slid 2.45 per cent to close at 4,258.79 with volume tumbling 21 per cent to 207.48 million shares. The traded value declined 22 per cent to Dh878.12 million.
The Abu Dhabi Securities Exchange Index retreated 1.35 per cent to end at 4,034.23. Volumes fell 17 per cent to 99.81 million shares.
The decline in a downward spiralling market is increasingly across the board - real estate, banks, investment, energy, telecom. Yesterday Emaar Properties fell 3.57 per cent to close at Dh7.57.
Other real estate stocks which retreated included Deyaar, Union Properties, Aldar Properties and Sorouh Real Estate. Banks and finance stocks such as Emirates NBD, First Gulf Bank, National Bank of Abu Dhabi, Tamweel and Amlak Finance dropped.
etisalat and du fell 1.20 per cent and 3.49 per cent to close at Dh16.50 and Dh4.70 respectively.
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