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Persian Gulf Shares Tumble on Egypt Risk

Sunday, 30 Jan 2011 03:03 PM

Persian Gulf shares plunged Sunday, sending Dubai’s index down the most in a year, on concern political unrest could spread after Egyptian protests persisted and the North African country’s president refused to resign.

Emaar Properties PJSC, which claims to be the largest foreign-direct investor in Egypt’s real-estate industry, tumbled as much as 9.7 percent. Air Arabia PJSC fell to the lowest intraday level on record. The DFM General Index plunged 6.2 percent, the most since December 2009, to 1,512.91 at 10:32 a.m. in Dubai. The Bloomberg GCC 200 Index slid 1.1 percent.  Egypt’s market was closed after tumbling 16 percent the past two trading days.

"International investors are fleeing Middle East stock markets with justified risk aversion across the board’’ on fear the crisis may spread, said Mahdi Mattar, head of research at Abu Dhabi-based CAPM Investment PJSC, an investment banking company. "Due to panic from local and international investors, there is no discrimination between stocks with exposure or non- exposure to Egypt, though we expect that in coming sessions."

Stocks on Friday plunged worldwide, the most since November on Jan. 28, with the MSCI World Index declining 1.4 percent, and crude oil posted the biggest jump since 2009 after protesters posed the biggest challenge to Egyptian President Hosni Mubarak’s 30-year rule.

Emaar dropped the most since January 2010 to 3.06 dirhams. The company’s Egypt unit, Emaar Misr for Development S.A.E., has investments of about 29 billion dirhams ($8 billion) in the North African country, according to its website. Separately, Emaar sold $500 million of Islamic bonds, its first sukuk in more than six years, Jan. 27. Investors placed $1.7 billion of bids for the notes.

Air Arabia, the low-cost carrier with a hub in Alexandria, Egypt, slumped as much as 9.9 percent to 75.4 fils, the lowest level since the shares started trading in July 2007.

Emirates Telecommunications Corp. declined 3.4 percent to 10.1 dirhams. The biggest phone company in the United Arab Emirates said  it suspended mobile phone services in Egypt after being ordered to do so by the Egyptian government.

Kuwait’s SE Price Index declined 2.1 percent and Abu Dhabi’s ADX General Index retreated 3.7 percent. Oman’s MSM30 dropped 3.2 percent, while Bahrain’s BB All Share Index fell 0.1 percent.

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Persian Gulf shares plunged Sunday, sending Dubai s index down the most in a year, on concern political unrest could spread after Egyptian protests persisted and the North African country s president refused to resign.Emaar Properties PJSC, which claims to be the largest...
egypt,stocks,stock,dubai,shares,mideast
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2011-03-30
 

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