[2008-06-30]  UAE shares retreat on decline in US, Europe
UAE shares retreated yesterday as declines in the US and European markets pushed sentiment lower in the Gulf region. The Dubai Financial Market (DFM) General Index dropped 0.5 per cent to close at 5,406.02 while the Abu Dhabi Securities Exchange (ADX) General Index fell 1.1 per cent at 4,904.36 points.

National Central Cooling Co (Tabreed) led the losers in Dubai with a slump of 1.6 per cent to Dh2.41. The UAE-based refrigeration firm announced plans to form an asset holding company to boost profit. In a filing to DFM, Tabreed said it would transfer its assets into the new holding company and act as the manager of the assets.

Arab Insurance Group declined 8.8 per cent to Dh3.01 followed by Jeema Mineral Water, which slipped five per cent to Dh5.15, and Ajman Bank with a fall of four per cent to Dh2.40. DFM Co fell 2.9 per cent to Dh5.09.

"Declines globally are pushing sentiment lower in the Gulf," said Julian Bruce, director of institutional sales at EFG-Hermes Holding SAE, Egypts largest investment bank, in a Bloomberg report.

"Local interest has dissipated, volumes are low and there doesnt seem to be a catalyst before the summer."

The US stocks slumped last week on concern that writedowns and record oil prices would badly affect economic growth. In Europe, the Dow Jones Stoxx 600 declined 2.6 per cent for the week. Emirates Telecommunications Corp, also known as Etisalat, fell 1.5 per cent to Dh19.50 on ADX.

This was the biggest fall since June 15 of the second-largest Arab phone company. Gulf Medical Projects fell 9.5 per cent to Dh3.16 followed by National Marine Dredging Co, a UAE firm which deepens waterways, with a decrease of 7.3 per cent to Dh12.05. First Gulf Bank, Abu Dhabis second-largest lender by market value, lost 0.2 per cent to Dh26.50.



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