UAE stocks plunge on global weakness

The Dubai stock index plunged yesterday to hit more than a two-month low on feverish selling by investors on the back of sharp fall in overseas markets.

Abu Dhabi stocks shared a similar fate, with most of them retreating.

Real estate, construction and financial and investment services companies witnessed major declines.

After Friday?s sell off in global markets, which the S&P 500 stock index declining 2 per cent, it was expected that the concerns surrounding emerging markets on Federal Reserve?s withdrawal of quantitative easing would have a spillover effect in local bourses when they opened yesterday. Add to it that both markets experienced a solid uptrend since the start of the year and was expected to face resistance on purely technical grounds.

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