UAE indices falls with Saudi as crude drags

The Dubai Financial Market General Index closed 0.57% lower at Dh4,096.63

Published: 18:26 August 4, 2015

By Siddesh Suresh Mayenkar, Staff Reporter

Dubai: UAE indices fell on Tuesday along with Saudi stocks weighed by falling oil prices. Saudi’s Tadawul also fell half a per cent.

Oil prices edged higher after falling more than 5 per cent on Monday below the keenly-watched $50 per barrel mark. The Dubai Financial Market General Index closed 0.57 per cent lower at Dh4,096.63.

“Unfortunately the environment is not great for us. Oil prices below $50 per barrel is putting some pressure on our local markets,” Sebastien Henin, head of asset management at The National Investor.

Emaar Properties ended 0.88 per cent lower at Dh7.90, while Dubai Islamic Bank ended 0.13 per cent lower at Dh7.62. Drake and Scull ended 1.32 per cent lower at Dh0.750. Damac Properties ended 0.62 per cent lower at Dh3.20. Out of a total 36 stocks traded on the exchange, shares of 23 firms fell, while shares of 9 other firms rose.

Air Arabia ended steady at Dh1.53.

“We remain positive on Air Arabia with oil prices declining will impact directly the company’s cost and improve its future results, stock has been holding solid at Dh1.60 which could be a good entry point and facing a resistance at Dh1.68,” said Ahmed Waheed, Vice President — Institutional Desk at MENACORP.

Abu Dhabi Securities Exchange General Index closed 0.20 per cent lower at 4,811.71.

Aldar Properties ended 1.50 per cent lower at Dh2.63 after higher than expected results, while Eshraq Properties closed at Dh0.78, down 1.27 per cent.

“Only an immediate break below Dh2.60 would negate the bullish

scenario and increase bearish pressures in the coming days in Aldar,” said MENACORP in a statement to its clients.

Out of a total of 27 firms traded on the exchange, shares of 10 firms rose, while shares of 15 companies fell.

Profit-taking:

“I’m expecting to see some profit-taking in coming weeks, if we don’t have a recovery in oil prices,” Henin said, adding “In this environment stocks or sectors which are directly related to petrochemicals will definitely suffer.”

Saudi Basic Industries ended 1.29 per cent lower at 92.50 Saudi Riyals. National Commercial Bank fell 1.96 per cent at 62.58 Saudi Riyals. Saudi’s Tadawul ended 0.58 per cent lower at 8,769.47.

Elsewhere, Qatar Exchange Index closed 0.52 per cent higher at 11,811.56. Muscat Securities MSM 30 index ended 0.49 per cent lower at 6,466.89. Kuwait Stock Exchange index closed 0.18 per cent higher at 6,224.09.

Egyptian EGX 30 price index ended 1.17 per cent higher at 8,181.95. Developer Emaar Misr climbed 3.6 per cent, having posted a 283 per cent jump in net profit for the first half of this year and strong sales growth.

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