Property stocks bear brunt of UAE markets sell-off

UAE equities ended down on Tuesday in line with international stock markets, as weak Chinese manufacturing data hit global investor sentiment.

Abu Dhabi’s headline share index led losses across the Arabian Gulf region, ending the day down 2.6 per cent at 4,375.24.

Eshraq Properties and Aldar Properties were among the worst affected stocks on the index, both closing down 4.7 per cent.

The Dubai Financial Market General Index ended in the red for its second consecutive day, closing down 2.1 per cent at 3,584.59 on a thin day of trade.

Arabtec and Emaar Properties bore much of the brunt of the sell-off, falling 4.5 per cent and 3.4 per cent, respectively, on the day.

“Everyone was watching the Chinese PMI numbers, which are looking really negative at this stage,” said Tariq Qaqish, the head of asset management at Al Mal Capital in Dubai.

The Chinese manufacturing purchasing managers’ index (PMI) fell to a three-year low of 49.7 last month, down from 50 in July, with numbers below 50 implying a contraction in manufacturing activity.

The news hit the Asian and international markets hard, with the Nikkei falling 3.8 per cent and Hong Kong’s Hang Seng closing down 2.2 per cent.

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