The Dubai Dubai Financial Market (DFM) General Index closed at 1,651.90 Thursday, down half a percentage point compared to Wednesday, but 13.65 points higher week-on-week.
Losses at Arabtec Construction (off 0.55%) and district cooling specialist Tabreed (down 4.17%) weighed on the market.
Islamic investment ban Gulf Finance House or GFH from Bahrain gained the most (up 2.80%). Emirates NBD recovered from yesterday’s losses and closed 1.42% higher.
According to the DIFC Middle East and North Africa (MENA) Chartbook, published earlier today, “despite the recent rise in the loan-to-deposit ratio, the (UAE) financial sector remains in a stronger position than in 2008 to withstand another global downturn that could stem from the European debt crisis. The exposure of the country’s banks to sovereign and private sector debt in the Euro area is very small.”
Dubai-based investment bank Shuaa Capital, however, dived 5% after rating agency Moody’s downgraded Shuaa to “B1” from “Ba3”. It is Moody’s second downgrade on Shuaa within four months. Moody’s also assigned a “negative” outlook on the investment bank as it faces multiple challenges such as fierce competition and a rough regional and global investment climate.
Six shares advanced, 16 declined and five ended even. Some 177 million shares were traded, valued at Dhs177.9 million ($48.49 million).