Middle Eastern bourses pulled back on Wednesday in line with global markets as trading volumes remained low, indicating that many retail investors in the region had yet to return from their Eid holidays. Dubai's index fell 1.7 percent as heavyweight Emaar Properties slid 2.2 percent. Emaar Malls Group, which was listed this month, fell 0.9 percent.
Abu Dhabi's index slid 0.7 percent as Union National Bank and Aldar Properties dropped 3.7 percent each. "I think it's basically a very negative international lead coupled with the fact that quite a few investors are still away for the Eid holiday," said Amer Khan, senior executive at Shuaa Asset Management in Dubai.
Most markets across the Middle East were closed on Sunday and Monday for Eidul-Azha holidays, and some investors may be taking the rest of the week off as well. Markets in Saudi Arabia, Qatar, Kuwait and Oman will only reopen next week. European and Asian share markets were mostly in the red on Wednesday as investors, concerned about waning global growth, shifted to bonds and waited for the US Federal Reserve to release minutes of its last policy meeting.
The International Monetary Fund on Tuesday shaved its global growth forecast to 3.3 percent for this year from 3.4 percent, warning of weakness in the euro zone, Japan and big emerging markets such as Brazil. It also cut the growth outlook for the Middle East. Oil prices reached their lowest in more than two years on Wednesday, which has little direct effect on UAE markets, where few oil industry-related firms are listed, but which could dampen general investor sentiment if it continues.
Bourses in Bahrain and Egypt also fell as they reopened after the Eid break. Bahrain's index slipped 0.3 percent in thin trade which involved only a handful of stocks. Telecommunications firm Zain Bahrain said on Monday that, in the first IPO on the market since 2010, it had sold just over a third of its offer to the public, reflecting weak demand. Egypt's main index fell 1.4 percent as most bluechips retreated. Commercial International Bank, the country's largest listed lender, fell 2.8 percent, property developer Talaat Moustafa Group dropped 4.9 percent and investment bank EFG Hermes was down 4.0 percent.
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