Dubai and Abu Dhabi stock markets have lost around $120 billion in value since the start of the US-Israel war on Iran, according to multiple reports, as the conflict continues to rattle Gulf economies.

Reports indicate that the Dubai and Abu Dhabi benchmark indexes have dropped sharply since the conflict began on February 28, with Dubai’s index falling about 16 per cent and Abu Dhabi declining around 9 per cent. The losses have placed UAE markets among the hardest-hit financial markets globally during the ongoing crisis. 

More than $120 billion has been wiped from market capitalization across the two exchanges in just over a month, with Dubai taking the larger hit due to its greater exposure to tourism, real estate, and global capital flows, which are particularly sensitive to geopolitical tensions. 

The downturn comes as the broader Middle East conflict fuels investor uncertainty, rising oil prices, and fears of disruptions to regional trade and travel. UAE markets have also faced pressure from attacks and security concerns linked to the conflict, which have further shaken investor confidence. 

Meanwhile, Gulf markets more broadly have seen volatility, with Dubai among the worst performers globally in recent weeks, while some other regional markets have shown mixed performance depending on exposure to the conflict. 

The ongoing war has triggered wider global market turbulence, with oil prices surging and equities falling across multiple regions as investors brace for prolonged instability in the Middle East. 

The situation remains fluid, with analysts warning that continued escalation could lead to further losses across Gulf financial markets. (Newswire)

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A landmark stock market transaction took place on Tuesday (27 May), with Ceylon Steel Corporation acquiring a 9.99% stake in Hatton National Bank PLC (HNB) from Browns Investments PLC.

Making it one of the largest deals on the Colombo Stock Exchange in recent times, the negotiated deal involved the transfer of 45,317,177 voting shares at Rs. 305.00 per share, generating a turnover of Rs. 13.82 billion

Browns Investments held 9.99% of the voting share capital in HNB, making it the largest single shareholder, prior to the sale. 

Capital Alliance Securities (Pvt) Ltd, which acted as the broker for the buyer, Ceylon Steel Corporation, also handled 60% of the trade on behalf of the seller, Browns Investments PLC. (Newswire)

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Two directors of Sri Lanka’s Laugfs Gas PLC and a stockbroker have made a settlement of Rs. 231 million to the state-owned Employees’ Provident Fund (EPF) over an action filed by the Securities and Exchange Commission of Sri Lanka (SEC) for offences of conspiracy to commit Market Manipulation.

According to a statement on the SEC’s official website, the action was filed against W.K.H. Wegapitiya for offences of conspiracy to commit Market Manipulation and committing Market Manipulation under the provisions of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended before the Fort Magistrates’ Court in Case bearing No 16967/20, in respect of the shares of Laugfs Gas PLC between 07-10 October 2011.

An application was made in Court by the Counsel representing W.K.H. Wegapitiya for the SEC to consider compounding these offences in terms of Section 51A of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended.

Having considered the loss caused to the Employees’ Provident Fund, the time since the said offences were committed, the accused agreeing to settle the loss caused to the EPF, other pending litigation connected to this case, and the absence of previous convictions, the SEC decided to consider the application to Compound the said offences upon the payment of a sum of Rs. 6.6 Million to the Compensation Fund of the SEC by the accused.

This compounding was effected following Wegapitiya together with the other accused in this case, U.K. Tilak N de Silva and T. I. Hulangamuwa agreeing to settle the EPF the excess amount of Rs. 231 Million paid by the EPF in respect of the 33 Million shares of Laugfs Gas PLC bought at Rs. 48/- on 10th October 2011.

The amounts referred to above were settled to the EPF and the SEC in open Court by Wegapitiya and the other two accused when the matter was called before the Fort Magistrate on 19 July 2024.

According to the SEC, the said funds have been duly credited to the EPF and the Compensation Fund of the SEC respectively. (Newswire)

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India’s stock market took its worst tumble in four years after Indian Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) lost its parliamentary majority.

The shock outcome of Tuesday’s election count means Modi will need to rely on smaller parties to form a governing majority in the 543-member Lok Sabha, the lower house of India’s parliament, raising uncertainty about the Indian leader’s ability to pursue his pro-business agenda.

The NSE Nifty 50 and BSE Sensex indexes closed at 5.93 percent and 5.74 percent lower, respectively, on Tuesday, after falling by as much as 8.5 percent earlier in the day.

Indian stocks recorded further losses on Wednesday morning before recovering in the afternoon, with the two indexes each up more than 1.5 percent as of 05:30 GMT.

Why have investors reacted negatively to the election result?

Investors have been overwhelmingly favourable towards Modi’s economic agenda throughout his decade-long tenure.

Pledging to transform India into a developed nation by 2047, Modi has directed massive investment into infrastructure, championed domestic manufacturing, lured foreign investment, cut red tape and promised to root out corruption.

On the Indian leader’s watch, the Nifty 50 index has almost tripled in value – although some analysts argue that many Indian firms are now overvalued.

Earlier this year, India’s stock market capitalisation topped $4.3 trillion to overtake Hong Kong as the world’s fourth-largest market.

Before Tuesday’s surprise election outcome, Indian stocks surged to record highs as exit polls showed the BJP-led National Democratic Alliance (NDA) on track for a landslide victory.

Modi, a popular but polarising leader, has presided over a period of strong economic growth in the world’s most populous nation.

Gross domestic product (GDP) grew by 8.2 percent in the fiscal year ending in April, far outpacing most developing and developed economies alike.

Over the last decade, the GDP per capita has risen from about $5,000 to more than $7,500.

During that time, India has gone from being the ninth-largest economy in the world to the fifth-largest.

While Modi has all but secured a third term as prime minister, his need to negotiate with smaller constituents of his coalition raises the possibility that he will have to compromise on aspects of his economic agenda.

“A very high majority for BJP-led NDA would have meant greater appetite for reforms and limited need for any populist measures, and continued capital expenditure agenda,” Garima Kapoor, an economist and a senior vice president at Elara Capital in New Delhi, told Al Jazeera.

“The markets are reassessing this shift and hence, most public sector units, public sector banks and capital expenditure-led stocks are seeing sharp correction.”

Alexandra Hermann, a senior economist at Oxford Economics, said Modi’s smaller-than-expected majority would make it more difficult to pass reforms related to land, labour and capital regulations.

“Further – less contentious – infrastructure investment will likely remain a key focus,” Hermann told Al Jazeera.

Perhaps more than anything else, though, markets hate uncertainty – a dynamic delivered by Tuesday’s unemphatic outcome.

How will the election affect India’s economic policies?

Many of India’s economic advantages are unaffected by the election outcome, or even who is in power.

Whatever direction Modi’s coalition takes, the country will still benefit from a huge relatively young population.

New Delhi, which has traditionally had a policy of non-alignment, is also likely to keep benefitting from its distance from the geopolitical rivalry between the United States and its allies on the one side and Russia and China on the other.

“We do not think the election outcome affects the longer-term outlook of the India market, which is underpinned by longer-term tailwinds of favourable population demographics and the extended geopolitical tensions between China and US favouring a shift to India,” Gary Tan, a portfolio manager at Allspring Global Investments, told Al Jazeera.

Kapoor of Elara Capital said that she did not believe the election result would lead to much of a shift in policy over the longer term.

“In the long run, NDA at 290 or 310 doesn’t mean much difference in terms of policy approach. Overall, the shift is mainly in terms of whether we see aggressive supply-side reforms or see a balance between supply-side and demand-side reforms,” she said.

Is India’s stock market boom going to last?

Despite India’s impressive GDP growth, the country’s economy faces serious challenges, including widespread poverty, growing inequality, and pervasive corruption.

Among the most pressing issues is a shortage of quality jobs to match the needs of its huge population.

In a report released earlier this year, the International Labour Organization warned of a “mismatch” between the aspirations of India’s educated youth and available jobs.

“Beyond a narrow view of the unemployed, there is a large proportion of youths, particularly young women, not in education, employment or training,” the UN body said.

Tan said that India’s growing household debt is another concern.

“The Reserve Bank of India has been stepping in to control this risk. While positive for a more sustainable growth path, the near-term cost can result in slower credit growth at an important juncture in India where private corporate capital expenditure is looking to play catch-up from previous years of underinvestment alongside the rolling out of large-scale infrastructure projects,” he said.

After years of rip-roaring gains, some analysts believe that many Indian firms are now overvalued, in part due to a huge influx of inexperienced small-time local investors into the market.

In an analysis last month, financial services firm Morning Star quoted a portfolio manager who noted that Indian stocks were trading at higher prices than other emerging markets.

“We remain selective in the companies we invest in and favour those that have sustainable earnings power and whose share prices are at a discount to our estimate of their intrinsic value,” Morning Star quoted Chetan Sehgal of Franklin Templeton as saying. (Al Jazeera)

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Popular Bollywood actor Arshad Warsi and his wife Maria Goretti, are among 45 individuals and companies banned by the Securities and Exchange Board of India (SEBI) from participating in the securities market, officials said on Thursday. The decision comes after an investigation into allegations of share price manipulation by certain entities of two companies, Sharpline Broadcast Ltd and Sadhna Broadcast Ltd, through uploading misleading videos on YouTube channels.

SEBI found that certain individuals uploaded false and misleading videos recommending investors buy shares of Sadhna Broadcast Ltd and Sharpline Broadcast Ltd for extraordinary profits. In addition to Arshad Warsi and Maria Goretti, some promoters of Sadhna Broadcast Ltd have also been restrained from participating in the securities market.

Along with the ban, SEBI has impounded illegal gains worth ₹ 54 crore made by the entities after misleading videos were uploaded on YouTube channels. Two separate interim orders detail the investigation’s findings.

According to the interim order, Arshad Warsi made a profit of ₹ 29.43 lakh, Maria Goretti earned a profit of ₹ 37.56 lakh, and Iqbal Hussain Warsi made a gain of ₹ 9.34 lakh. These three individuals, among others, have been classified as volume creators by SEBI.

The investigation began after SEBI received complaints alleging that certain entities were engaging in price manipulation and offloading shares of Sadhna Broadcast Ltd and Sharpline Broadcast Ltd. The complaints alleged that misleading videos with false content about the two companies were uploaded to lure investors.

SEBI conducted an examination from April-September 2022 and found that there was a significant increase in the price and volume of shares of the two companies between April and mid-July 2022. False and misleading videos about Sadhna Broadcast Ltd were uploaded on two YouTube channels, The Advisor and Moneywise, during the second half of July 2022. Similarly, similar videos about Sharpline Broadcast Ltd were uploaded on two YouTube channels, Midcap calls and Profit Yatra, in the second half of May 2022.

SEBI classified the entities into categories such as creators of YouTube channels, net sellers/promoters and profit makers, volume creators, and information carriers. According to SEBI, these entities collectively helped create trading volumes and interest in the shares, spread false and misleading YouTube videos, and induced investors to buy the shares at inflated prices, thereby violating the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules. Collectively, net sellers/promoters and some of the volume creators made extraordinary profits as a result of this scheme.

In the case of Sadhna Broadcast Ltd, SEBI found that the elaborate modus operandi adopted by the entities, including the egregious misuse of patently false and misleading YouTube videos, had led to a drastic increase in the number of small shareholders, from 2,167 to 55,343, who ended up buying shares at an inflated price. The number of small shareholders increased from 517 to 20,009 in the case of Sharpline Broadcast Ltd.

SEBI has barred the 45 entities “from buying, selling, or dealing in securities either directly or indirectly, in any manner whatsoever until further orders.” Additionally, the entities have been directed not to dispose of any assets, including money in bank accounts, without prior permission from SEBI until the impounded amount is deposited in the escrow account. (NDTV)

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