Abu Dhabi, Dubai indices fall 1% as Fed move eyed

Investors, traders stay on the sidelines ahead of rate decision and long-awaited stability in crude oil market

Published: 18:10 September 14, 2015

By Siddesh Suresh Mayenkar, Staff Reporter

Dubai: UAE indices fell on Monday, weighed down by falling oil prices amid negative leads from China.

The Dubai Financial Market General Index closed 1.56 per cent lower at 3,511.28, while the Abu Dhabi Securities Exchange General Index closed 1.45 per cent lower at 4,485.99.

“We believe that long-term bullish scenarios will be on hold at current times and traders should refrain from accumulating any new long-term position. Our focus remains to be directed on the bearish side after we witnessed an aggressive breach of the 4,500 and reaching a low of 4,070,” Menacorp said in a note to its clients.

Emaar Properties closed 2.06 per cent lower at Dh6.17, while Amlak Finance closed 2.45 per cent lower at Dh1.99.

“Long-term traders should remain neutral in Emaar at current times with the aim to reposition near a strong support zone and only after clear bullish reversal signs,” said Menacorp.

Damac Properties closed 2.30 per cent lower at Dh3.40, while Arabtec closed 2.70 per cent lower at Dh1.80.

Out of a total of 36 stocks traded on the exchange, the shares of 26 firms fell, while those of four others rose.

In Abu Dhabi, etisalat shares fell 0.5 per cent to end at Dh14.25, while Aldar Properties also fell more than 1 per cent to close at Dh2.35.

“The trend is strongly bearish in Aldar Properties at the time being as marked by the fall below many daily strong support zones,” said a Menacorp analyst.

‘No-man’s-land’

“It’s no-man’s-land before the eid holidays next week,” said Sanyalaksna Manibhandu, manager of Research at the National Bank of Abu Dhabi Securities.

Volumes have fallen by a considerable extent to Dh300 million from about Dh1 billion a few months ago.

“A lot of people are not participating, some people are waiting for the US Federal Reserve’s decision, some people are waiting for Eid holidays, some are waiting for both,” Manubhandu said, adding that “no body wants to commit new money right now.”

The US Federal Reserve will hold a meeting on Wednesday and Thursday and may come out with a decision whether to raise or maintain rates. Most of the market participants expect the Fed to maintain rates and raise it only in December.

Saudi’s Tadawul index was down 1.5 per cent at 7,552.97. Saudi Basic Industries closed 1.92 per cent at 78.5 Saudi Riyals, while Alinma Bank closed 2 per cent lower at 18.6 Saudi Riyals.

Elsewhere in the Gulf, Qatar Exchange index closed 1.05 per cent lower at 11,534.32, while Muscat index closed 0.02 per cent lower at 5,794.69.

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