UAE stock markets continue to tumble

The Dubai and Abu Dhabi stock markets were buffeted yesterday by the fallout of Dubai's debt woes, both posting fresh losses in volatile trade.

The Dubai Financial Market index fell 6.39 per cent to 1,633.26 points, continuing a downward spiral a day after the market dropped 5.84 per cent.

The Abu Dhabi Securities Exchange fell 3.23 per cent to 2,542.06 points yesterday, with the construction sector dropping by 5.17 per cent and the banking segment sagging 3.76 per cent.

Saudi Arabia's stock market, the largest in the Arab world, also decreased yesterday, by 0.57 per cent to 6,210.78 points.

Qatar's exchange also lost ground yesterday, dropping 1.62 per cent to 7,016.52 points. Qatar's index was, along with Oman's, one of two to rise on Monday, when it closed at 7,132.26 points with a 1.06 per cent increase.

Oman's Muscat Securities Market also showed a decrease in early trading, falling 0.79 per cent to 6,252.25 points, after closing 0.32 per cent up at 6,302.17 points on Monday.

The Kuwait market increased by 0.26 per cent to 6,696 points yesterday. Bahrain's small exchange also rose yesterday, increasing slightly, by 0.08 per cent to 1,429.63 points, following a decrease of 0.07 per cent to 1,428.44 points on Monday.

Despite a brief respite on Sunday when they posted a slight rise, both of the markets in the United Arab Emirates are suffering heavy losses over Dubai's debt troubles.

The sharp falls came after Dubai on November 25 requested a freeze of payments on the debt of its largest conglomerate, Dubai World, which is liable for $59 billion.