Stock markets in the United Arab Emirates took another beating today on negative sentiment from a debt crisis that has seen Dubai share prices plummet more than 20% in two weeks.
The Dubai Financial Market index shed 6.12% to close at 1,638.05 points in a second straight day of losses.
Yesterday, the market dropped 5.84% to 1,744.83 points.
Also failing to shake off the downward trend was the Abu Dhabi Securities Exchange, which fell 3.36% to finish at 2,538.73 for a second successive day of declines.
Humam al-Shamaa, a financial analyst at Al-Fajr Securities, said the drops were due to negative sentiment over the Dubai debt crisis.
He also noted the volume of trade was low as investors stayed way from the market over Dubai's debt uncertainty.
Both the Dubai and Abu Dhabi markets have suffered heavy losses since Dubai requested a freeze of payments on the debt of its largest conglomerate, Dubai World, on November 25.
The request raised fears of a debt default by Dubai and sent jitters through global financial markets.
Dubai World, whose assets include ports around the world, is liable for $59 billion, while the emirate's overall debts are at least $80 billion, with some estimates as high as $120 billion.
