Shares Fall on Insufficient Bailout Plan

Wednesday marked the second day for the UAE shares to take a fall, since the Dh50 billion fund facility provided by the UAE Central Bank is not enough to relax the credit deprivation in the country. The lawmakers did not agree to the Govt. plan to buy bad assets, and for this reason the markets also moved in the direction of the US stocks, which closed quite low.

Chamel Fahmy, the senior regional sales trader at Beltone Securities Brokerage reported on tuesady, “The index of 25 companies traded on the Dubai Financial Market (DFM) plunged four percent to close at 3,890.16, bringing the three-day drop to 9.7 percent. The Abu Dhabi Securities Exchange (ADX) General Index plummeted for a second day with a fall of 2.3 percent at 3,811.08 points.”

While Dubai Islamic Bank, which is the nation’s largest bank complying with Islamic rules had a fall down 7.1 % to Dh5.35, the Shuaa Capital, the country’s biggest investment bank saw a fall down of 11.4% to Dh3.95.

“The markets have lost all the gains posted on Monday as the credit crisis in the US are affecting sentiments here,” added Chamel Fahmy.