UAE indices fall 1 per cent with emerging markets as China roils
Global markets faced continued pressure a day after China devalued its currency, a move that is likely to fuel currency wars
Published: 19:13 August 12, 2015
Dubai: UAE indices fell more than a per cent on Wednesday joining the emerging markets after Chinese yuan led the currencies drop, battering global markets for another session.
The Dubai Fianancial Market General Index ended 1.25 per cent lower at 4,022.12, with shares worth Dh449 million were traded on the bourse.
“There has been a contagious impact on the regional markets due to China devaluation,” Ahmad Waheed, vice president — institutional desk at MENACORP, a Dubai-based brokerage firm.
The yuan slid 1 per cent in onshore trading even as the People’s Bank of China intervened to stem losses after setting the currency’s reference rate 1.6 per cent lower, raising concerns that financial market volatility would curtail growth.
In Dubai, Emaar Properties ended 1.55 per cent lower at Dh7.63, while Damac Properties closed 0.84 per cent lower at Dh3.55. Amlak Finance closed 2.64 per cent lower at Dh2.21.
Dubai Islamic Bank closed 0.79 per cent lower at Dh7.49.
DIB trading close to Dh7.50 which could be a good entry point as we expect it to rebound from here in an attempt to break Dh7.70 resistance, Waheed added.
Out of a total of 33 stocks traded on the exchange, shares of 27 forms fell, while shares of other 3 companies rose. The rest stayed steady.
“Market should be back to normal and trade higher on Thursday. In general, we are still positive on the UAE markets as banks results were better than expected, and companies have been reporting better than expected results,” Waheed said, adding “market is holding very well above the 4,000 levels.”
Dubai index has been trading in the range of 4,000-4,200 for the past few weeks, and is waiting for a trigger to break on the either side.
In Abu Dhabi, the general index closed 1 per cent lower at 4,765.76. Abu Dhabi Commercial Bank ended flat at Dh8.72, while Aldar Properties ended 1.50 per cent lower at Dh8.72. Out of a total of 29 firms traded on the exchange, shares of 16 firms fell, while shares of another 7 firms rose.
Elsewhere, Saudi’s Tadawul index ended 0.85 per cent lower at 8,683.51, while Qatar Exchange index closed 0.13 per cent lower at 11,772.66. Saudi Basic Industries closed 0.26 per cent lower at 91.25 Saudi Riyals.
Muscat Securities MSM 30 index closed 1.26 per cent lower at 6,320.53. Kuwait Stock Exchange index closed 0.14 per cent lower at 6,285.60.
In the wider Middle East, Egyptian EGX 30 price index closed 2.12 per cent lower at 7,912.06.