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DFM drops a third day on global rout

February 2, 2014

Dubai's benchmark stock index fell for a third day, tracking a global equities rout that triggered more than $10 billion of redemptions from emerging markets last week. Abu Dhabi's measure advanced. The DFM General Index dropped 0.4 per cent to 3,754.43, the lowest close since January 27 . Emaar, the builder with the highest weighting on the benchmark, lost the most since January 29 and Dubai Islamic Bank retreated 1.2 per cent. Abu Dhabi's measure rose 0.4 per cent. Global equities declined last week as the US Federal Reserve cut stimulus for a second month. Emerging market equity funds posted net outflows of $10.4 billion , the biggest weekly drop in three years, according to EPFR Global data. The MSCI Emerging Markets Index has declined 6.6 per cent this year, while the Standard & Poor's 500 Index has dropped 3.6 per cent. "There is always a correlation between the UAE and international markets and the level of correlation becomes higher when we have a significant event like Fed Policy decision," Tariq Qaqish , head of asset management at Al Mal Capital .

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Source: Khaleej Times (United Arab Emirates)

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