[2008-02-11]  DFM falls over 3 per cent on Emaar's scrapped IPO
UAE stocks fell yesterday following the cancellation of share sale of Emaar Properties' Indian unit due to poor investor demand.



The Dubai Financial Market (DFM) General Index fell 3.1 per cent to close at 5,598.69 while the Abu Dhabi Securities Market (ADSM) Index dropped 1.8 per cent at 4,694.19 points.


The largest property developer in the Middle East and North Africa, Emaar scrapped the initial public offering of Emaar MGF Land Limited worth Dh6 billion. It fell 6.6 per cent to Dh11.35, its lowest close since October 8.

"It's mostly Emaar's news which is putting pressure on the markets and creating a bit of panic among domestic players despite the healthy fundamentals," said Rami Sidani, vice-president of Shuaa Capital, in a Bloomberg report.

He also noted the "major worries" regarding the effects of a US economic slowdown on the emerging markets, such as the Gulf countries.

Emaar, which had planned to sell 102.6 million shares in India's second-largest IPO by a real-estate developer, said on Friday that it would consider selling shares when the stock markets are more stable.

Amlak Finance, UAE's biggest Shariah-compliant home financier, and real-estate developer Al Mazaya Holding Company were also big losers, dropping 4.7 per cent to Dh4.63 and 5.5 per cent to Dh10.40, respectively.

DFM posted shares value of Dh1.7 billion, with 10,135 trades. Twenty-three of the 28 companies that traded on the measure had declined while five had advanced.
Source: Copyright © 2008 Khaleej Times