Tuesday, 22 December 2009 at 09:04, Reuters, Dubai
Most Gulf Arab bourses fell on Monday as debt-laden group Dubai World's meeting with creditors overshadowed trading in the United Arab Emirates.
Markets across the region saw low volume trading as investors awaited the outcome of the meeting.
"Excluding a last gasp surge from Emaar and Dubai Financial Market, the Dubai market was under pressure for the whole session," said Matthew Wakeman, head of cash and equity-linked trading at EFG-Hermes in Dubai.
"It is important to look at where the market is now and think whether we are in good enough shape to be trading at pre-Dubai World debt announcement levels.
"The answer has to be a resounding no, and we now need to consolidate and look to fourth-quarter results for further guidance on direction," Wakeman said.
Emirates NBD and Abu Dhabi Commercial Bank (ADCB) fell by 4.8 per cent each.
Moody's Investor Service on Dec 10 downgraded Emirates NBD and two other Dubai-based banks, and it said on Dec 15 it may cut the ratings of ADCB and three other UAE banks due to continued uncertainty over the restructuring of Dubai World's debt.
"Towards the end the volumes were pushed up, we saw buying into Emaar, DFM and Arabtec, on speculation that good news will come out after the market closes," said Ayman el-Saheb, director of operations at Darahem Financial Brokerage.
Dubai World issued a statement after markets had shut saying it would work with its creditors to seek a debt standstill in "an orderly way" and will get government financial support if an agreement is reached.
Oman was the region's biggest loser, falling 1 per cent, as the market fell for a fourth consecutive trading day. Qatar fell for a second day. Banks led declines in both markets.
In Kuwait, logistics firm Agility suffered its biggest one-day fall in a month, after it said it was looking at legal options after U.S. defence contractor DynCorp International dropped its US unit as a subcontractor in a US army deal.
The firm's shares fell 6.3 per cent.
Saudi Arabia and Bahrain were the only bourses to rise.
Saudi Arabian Mining Co (Maaden) rose 1.6 per cent after it signed on Sunday an agreement with Alcoa to build a $10.8 billion aluminium complex.
Saudi Basic Industries Corp rose 1.2 per cent after it said its board recommended paying a dividend of 1.5 riyals ($0.40) for 2009.
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