DUBAI - The real-estate sector continued to lead losses in the Dubai trading, as investors' confidence was low over the ongoing investigation on alleged corruption involving in some companies across the emirate.
The Dubai Financial Market (DFM) General Index plunged 2.4 per cent to close at 4,706.25 while the Abu Dhabi Securities Market (ADX) General Index plummeted 2.2 per cent at 4,365.48 points.
Dubai's real-estate sector retreated 2.2 per cent to close at 9,275.09, with Union Properties decreasing 3.8 per cent to Dh3.80, Deyaar Development falling 2.1 per cent to Dh1.83 and Emaar Properties sliding 1.4 per cent to Dh9, the lowest since April 2005.
Emirates NBD, the country's biggest bank by assets, led losses in Dubai's banking sector with a plunge of 4.5 per cent to Dh10.60, its lowest price in more than 10 months. The sector lost 2.9 per cent, or 89.73 points, at 2,978.14.
Authorities have arrested a number of senior executives in recent months for allegedly committing fraudulent financial acts in companies including Tamweel, a mortgage lender, and developers such as Deyaar and Nakheel.
"Rumours are flying left, right and centre about the investigations into major companies," said Mohammed Ali Yasin, the managing director of Shuaa Securities in Dubai, in a Bloomberg report.
"Until investors see an outcome or a light at the end of the tunnel, they will be holding their cash and waiting."
Abu Dhabi Commercial Bank slumped 4.2 per cent to Dh4.33 on ADX. The bank sued US firm Morgan Stanley, Bank of New York Mellon Corp and three securities-ratings services on the ground they allegedly rated too highly a structured investment vehicle that collapsed last year.
Abu Dhabi's biggest developer, Aldar Properties, fell three per cent to Dh9.64, its lowest price since January.
jose@khaleejtimes.com
DFM plunges 2.4 per cent
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