Dubai was struck by stockmarket tremors yesterday, following global stocks on a downwards spiral.
As the New York Stock Exchange fell by more than three per cent in early trading and European stocks slipped, Dubai and other GCC markets plunged into the red.
The financial sectors of Western markets were hit by concerns over the US investment bank Lehman Brothers's third quarter losses and its apparent failure to find a capital provider, after potential suitor Korea Development Bank said it was no longer interested.
Stockmarkets slumped in the GCC, just days after billions of dirhams were wiped out on Sunday.
The plunge in market values was seen across the region, with a fresh allegation of corruption and concerns that banks and credit markets were tightening lending. The combination helped extend a miserable finish to a bleak summer.
Dubai Financial Market (DFM) fell by 2.58 per cent, taking its annual loss to 26.4 per cent; Abu Dubai Securities Exchange (ADX) fell by 2.23 per cent, leaving its annual loss in double figures at 10.16 per cent.
Last Sunday, the DFM fell by 4.6 per cent, wiping out Dh13.68bn (US$3.7bn) of shareholders' money, while the ADX plummeted by 3.7 per cent, shrinking its market capitalisation by Dh15.68bn.
Dubai suffered most because of the latest alleged corruption investigation to hit the beleaguered housing sector - the housing mortgage firm Tamweel has confirmed Abdullah Nasser Abdullah, its deputy group chief executive, was arrested. He is the third Tamweel executive or former executive to be detained since April.
Analysts and brokers attributed the Dubai fall to Tamweel's subsequent plunge yesterday, which saw it lose 4 per cent of its value.
Tamweel said the investigation into its deputy group chief executive would not impact on the company's financial performance or its operations. It said the company's activities would continue as planned, adding that the company's board had approved new measures to ensure corporate governance.
Zeeshan Saleem, the trading manager at MashreqBank, said, "It is the lack of liquidity in the whole GCC which is the problem." He added that the falls could be a result of Ramadan. Last year, the DFM reached its low midway through Ramadan - after which it went to a bull run.
"This time we may have the same scenario. But this time last year foreigners were looking to enter the region," he said.
However, the dollar is strengthening and foreigners are unwinding their positions across the GCC, often because of margin calls, which means the market needs a catalyst to pick up interest in stocks.
The investment bank Shuaa Capital fell 9.3 per cent on the DFM yesterday, its lowest for nearly a year, because of fears that declining equities and fewer initial public offerings will hit profits.
Last month, Shuaa said its first quarter profit fell 10 per cent because of increased staffing costs and reduced investment income.
DP World, the world's fourth-biggest port operator, had its daily stock movement limit raised to 15 per cent from 10 per cent yesterday by the Dubai International Financial Exchange due to "market situations". Shares fell by 9.6 per cent to close at $0.66, its lowest ever.
It has been a rollercoaster week for Saudi Arabia's Tadawul. After falling 5.4 per cent on Saturday and then 1.7 per cent on Sunday, it cut those losses by climbing 4.3 per cent on Monday, riding on the global equity rise prompted by the Fannie Mae and Freddie Mac rescue.
Saudi faces a new rule change on Saturday which will limit certain stocks' price increase increments, in order to bring greater stabilisation to the market. Some investors are reported to be selling stock and pocketing the profit before then.
afoxwell@thenational.ae
CHINESE GRAND PRIX STARTING GRID
1st row
Sebastian Vettel (Ferrari)
Kimi Raikkonen (Ferrari)
2nd row
Valtteri Bottas (Mercedes-GP)
Lewis Hamilton (Mercedes-GP)
3rd row
Max Verstappen (Red Bull Racing)
Daniel Ricciardo (Red Bull Racing)
4th row
Nico Hulkenberg (Renault)
Sergio Perez (Force India)
5th row
Carlos Sainz Jr (Renault)
Romain Grosjean (Haas)
6th row
Kevin Magnussen (Haas)
Esteban Ocon (Force India)
7th row
Fernando Alonso (McLaren)
Stoffel Vandoorne (McLaren)
8th row
Brendon Hartley (Toro Rosso)
Sergey Sirotkin (Williams)
9th row
Pierre Gasly (Toro Rosso)
Lance Stroll (Williams)
10th row
Charles Leclerc (Sauber)
arcus Ericsson (Sauber)
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
More on animal trafficking
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Book%20Details
%3Cp%3E%3Cem%3EThree%20Centuries%20of%20Travel%20Writing%20by%20Muslim%20Women%3C%2Fem%3E%3Cbr%3E%3Cstrong%3EEditors%3A%20%3C%2Fstrong%3ESiobhan%20Lambert-Hurley%2C%20Daniel%20Majchrowicz%2C%20Sunil%20Sharma%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EIndiana%20University%20Press%3B%20532%20pages%3Cbr%3E%3C%2Fp%3E%0A
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
The specs
Price, base / as tested Dh1,470,000 (est)
Engine 6.9-litre twin-turbo W12
Gearbox eight-speed automatic
Power 626bhp @ 6,000rpm
Torque: 900Nm @ 1,350rpm
Fuel economy, combined 14.0L / 100km
Bridgerton%20season%20three%20-%20part%20one
%3Cp%3E%3Cstrong%3EDirectors%3A%20%3C%2Fstrong%3EVarious%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Nicola%20Coughlan%2C%20Luke%20Newton%2C%20Jonathan%20Bailey%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ELeap%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ziad%20Toqan%20and%20Jamil%20Khammu%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20Undisclosed%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3ESeven%3C%2Fp%3E%0A
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million