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UAE shares continue decline as Emaar sees Egypt listing denied
Published: 28/03/2007 12:00 AM (UAE)
By Ahmed A. Elewa, Staff Reporter
Abu Dhabi: The UAE markets continued to decline yesterday as most blue chip stocks in Dubai and Abu Dhabi recorded losses.
In Dubai, the general index fell by 0.3 per cent to 3,690.16, with the leading share Emaar Properties falling by 0.46 per cent to Dh10.75. Some investors revealed worries about the company's overseas portfolio, after the Egyptian Capital Market Authority (ECMA) rejected its application to list Egyptian unit Emaar Misr.
"There are clear and transparent conditions for listing on the Egyptian markets, as we require a balance sheet, as well as recorded profits of at least 1 per cent of the authorised and paid up capital, and these conditions were not met by Emaar Misr," commented Dr Hani Sarie Al Deen, director of ECMA.
"The company has the right to complain, but in fact we have not made any exceptions since 2002 when these rules first came into effect, and we cannot do this now, as it will affect our integrity," he added.
Some analysts attribute Emaar's sharp decline to a wave of selling by foreigners, who fled the market due to concerns about government control.
"This is not true, as many foreigners see strength in the alliance between Emaar and Dubai Holding, besides, the percentage of foreigners does not indicate whether they are buyers or sellers," explained Mohammad Ali Yasin, general manager of Shuaa Securities. Many agree that the row over Emaar's listing in Egypt has added to its recent share slide.
However, the developer's strong performance in the third quarter, which is due soon, will help reverse the situation, according to Yasin.
Abu Dhabi continued its decline with the general index declined by 0.82 per cent to 2,908.54.
"Investors in Abu Dhabi do not rightly measure the pace of the correction that follows the date when the dividend takes effect," explained Yasin, referring to the consecutive losses of Abu Dhabi Securities Market this week.
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their proerty fell last year by 15% as they rely on imported labour and cost of living went up 45%
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