Shares of food firms ends in red

Gulf based food companies saw significant decline in shares yesterday as stocks declined 0.45 per cent in Abu Dhabi’s food and farming companies. The decline is reported despite assurance by analysts regarding Emirates resilience to the financial crisis. Food and farming sector is the only segment where stocks declined amid uncertain signals from US and European markets.

Shares of Agthia Group, which manufactures and distributes food, declined 1 per cent at Dh1.92. Conditions at the Kuwait exchange were also not favorable as the exchange saw 0.95 per cent decline in yesterday’s trading.

Farouk Miah, an equity analyst at NCB Capital in Riyadh attributed this decline to weakening of dollars amid uncertainties prevailing in the US market, especially after announcement of its declined credit rating. Mr. Miah, however, did not ruled out some one-off issues responsible for fall of Kuwaiti index.

He went on to say, "If the US situation gets more complicated and the dollar weakens … imports get more expensive.”

Meanwhile, the stocks of agriculture and food sector also remained under pressure in Saudi Arabia declining 0.4 per cent.