Soft Dubai stock market in no state to face double whammy
Economic activity in the emirate has been lagging as real-estate prices drop and domestic demand falters, prompting the government to announce measures to stimulate growth
Dubai — Traders are running out of reasons to stay in Dubai’s stock market as it heads for its worst year since the 2008 debt crisis. Dubai’s main equities gauge has lost 19% this year, under pressure mostly by real-estate developers. The index is now caught between increasing geopolitical woes centred on its neighbour Saudi Arabia and those emanating from global emerging markets. Saudi Arabia’s main index was up 1.8% for the week as of 1.26pm in Riyadh on Wednesday. That followed a slump on Sunday amid the growing diplomatic row over the disappearance of Saudi journalist Jamal Khashoggi, and analysts speculated that government-related funds were subsequently used to boost the securities. In Dubai, the benchmark is still down 0.5% for the week. The recent events involving Khashoggi’s disappearance, “the strength of the reaction by the US, and also the market move, showed we are dealing with a totally different ball game”, said Ami Kemppainen, a money manager at Terra Nova Capital Ad...
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