[2008-05-14]  UAE Stock Markets Dubai bourse falls Discuss
The ongoing tension in Lebanon has sparked concerns among investors, prompting UAE shares to drop yesterday. The Dubai bourse retreated 1.4 per cent to close at 5,721.15 and the stock benchmark index in Abu Dhabi lost 0.1 per cent at 5,022.14 points.

Emirates NBD, the biggest bank in the UAE by assets, fell two per cent to Dh12.05 while Oman Insurance Co was the biggest loser on the Dubai Financial Market (DFM) General Index with a slide of 4.8 per cent to Dh10, followed by International Financial Advisers, which slipped four per cent to Dh8.

The bank said in a Bloomberg report that it expects to double the amount of loans it arranges for other banks this year as it begins developing relations in foreign markets. Last year it managed Dh6.6 billion ($1.8 billion) worth of loans for financial companies, and has been hired by four banks in Turkey, Russia and Ukraine to help with new borrowings.

"The political situation in Lebanon, as any instability in the region, will naturally cause hesitation among investors," Rami Sidani, vice-president at Shuaa Capital PSC, was quoted by Bloomberg. "The low volumes show that liquidity is waiting on the sidelines until investors get a better view of the situation." Abu Dhabi National Insurance Co trailed all other firms listed on Abu Dhabi Securities Exchange with a slump of 9.7 per cent to Dh9.06 while Abu Dhabi National Takaful Co declined 7.5 per cent to Dh7.40.

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