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UAE stocks plummet amid global economy woes

Xinhua, August 23, 2015 Adjust font size:

Stocks listed on exchanges in Dubai and Abu Dhabi suffered the worst day losses in months following the slump of several currencies in the emerging markets and amid increased volatility at global stocks markets during the last week.

Following a turbulent week at global financial markets, shares in the United Arab Emirates (UAE), a major oil supplier, suffered significant losses at start of the new Islamic week which begins on Sunday.

The Dubai financial market (DFM) general index dived 6.96 percent on moderate trading turnover to close at 3,451.48, representing a near five month low. All sector indices landed in the red.

Dubai's sister market ADX in the UAE capital Abu Dhabi closed off five percent at a five-month low at 4,286.49. Like in Dubai, shares lost across the board.

Market bellwether Emaar Properties, the developer of the world's tallest tower Burj Khalifa, plummeted 8.31 percent. Abu Dhabi National Energy Company, known as Taqa (Arabic for energy) and the biggest oil and gas firm in the UAE, tumbled 9.52 percent on the ADX.

On the DFM, five shares hit a limit-down which means they declined by 10 percent, the maximum percentage loss which is possible during a single trading session at the DFM. Arabian Scandinavian Insurance or Ascana was the only gaining security on the DFM, finishing 14.63 percent higher.

On the Nasdaq Dubai, an only international exchange in the Middle East by regulation, shares of the world's third largest port operator DP World dived 8.76 percent.

Interior design firm Depa Limited was the only gainer (up 2.22 percent) on the Nasdaq Dubai.

The mini-crash followed a increased volatility at stock markets, currency and commodities markets last week. The global bellwether index Dow Jones Industrial Average in New York dived 3.52 percent.

Earlier in July, the international monetary fund (IMF) cut its global growth forecast to 3.3 percent for 2015, down from its earlier projection of 3.5 percent.

"The United States engine is not powerful enough to pull global growth," Dubai-based independent economist Nasser Saidi said earlier last week.

In addition, Chinese stocks tumbled 11 percent last week, but the IMF said last week it was premature to speak of a crisis in China, Dubai daily Khaleej Times reported in its today's issue.

At foreign exchange markets, the Turkish lira and the Kazakh tenge hit a new record low and a four-year low, respectively. In the Arab world, the Algerian dinar also hit a multi-year low last week, pointing to increased fiscal stress for Arab oil exporters. Oil (U.S. crude) temporarily fell below 40 U.S. dollars a barrel (159 liter) last Friday, a first since 2009. Endit