Dubai market takes deep breath on weaker money supply, lower PMI

06 March 2012

The Dubai Financial Market (DFM) General Index fell 3.71% to close at 1,689.18 points. Bellwether Emaar, the UAE's first real estate developer, declined 2.95%, while Gulf General Investment Company or GGICO lost the most (off 10%). Islamic home finance provider Tamweel was the only gaining share (up 12.90%). The DFM rose almost 30% during the last nine weeks and was hit by profit bookings. The HSBC UAE Purchasing Managers' Index, business activity growth in the UAE' non-oil private sector has dropped slightly in February, which weighed on the sentiment. In addition to that, the UAE Central Bank said money supply M0, which is currency in circulation and currency at banks, fell by 2.1% from Dhs53.2bn at the end of November 2011 to Dhs52.1bn at the end of December of the same year, Wam has reported.

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