UAE stocks fall, Saudi index tumbles on fuel subsidy cut report
Published: 17:58 October 27, 2015
Dubai: UAE stocks fell as Saudi Arabia’s main index fell more than 3 per cent after the government said it’s considering to cut fuel subsidies.
The Dubai Financial Market General Index closed 0.98 per cent lower at 3,518.16, after hitting a low of 3,493.10.
“The main trigger for weakness in our markets was the statement from Saudi oil minister, who spoke about a cut in fuel subsidies,” Muhammad Shabbir, head of equity funds & portfolios at Rasmala Investment Bank said.
Opec’s biggest producer is looking at raising domestic energy prices, Oil Minister Ali Al Naimi said on Tuesday.
Dubai Financial Market shares fell 3.85 per cent to end at Dh1.50, while Arabtec closed 4.05 per cent lower at Dh1.66. Dubai Islamic Bank closed 0.46 per cent lower at Dh6.48.
DAMAC Properties closed 2.55 per cent lower at Dh3.06, while Dubai Islamic Bank closed 0.46 per cent lower at Dh6.48.
Emaar Properties closed 0.77 per cent lower at Dh6.45.
“Traders should be aware of the unclear picture in the long term on Emaar Properties, cautioning us to monitor the behaviour of the share over the following week with confirmation towards a further rally coming only with a move above Dh7,” MENACORP said in a note to clients.
Out of a total of 34 stocks traded on the exchange, shares of 27 firms fell, while shares of another 7 rose.
Pressure to remain:
“Banks would remain soft as pressure is expected to remain,” said Shabbir, adding “from now till November, there would be fewer catalyst, though markets could surprise and we could see some interest coming back in December.”
Banks have been witnessing muted growth in the third quarter amid growing economic challenges. Emirates NBD, and First Gulf Bank among others published their third quarter results on Tuesday.
In Abu Dhabi, the general index closed 0.51 per cent lower at 4,391.40.
“In the medium term the Abu Dhabi index has returned to a bearish mode