Dubai: The Dubai index fell more than 3 per cent on Monday, weighed by weaker crude oil despite better than expected fourth quarter results from companies.
The Dubai Financial Market General Index ended down 3.60 per cent at 3,723.21, after losing as much as 3,681.80.
“Market came down because of falling crude oil, there was nothing other than that,” said Musa Haddad, equity fund manager at National Bank of Abu Dhabi’s asset management group.
Oil fell from the lowest closing price in almost six years amid signs that Saudi Arabia’s new king will maintain its production policy, bolstering speculation that a global glut will persist.
Takaful Emarat ended 8 per cent weaker to be at Dh0.920, and was the biggest loser in trade, while Damac Properties ended 7.58 per cent to be at Dh1.95. Dubai Investments also ended 7.11 per cent lower at Dh2.22.
Elsewhere in Abu Dhabi, the index ended 0.69 per cent lower at 4,534.51.
Saudi’s Tadawul All Share index ended 0.69 per cent higher at 8,480.1.
“Saudi was up as the transition was very quick and smooth. They didn’t take the time to decide who will be the king of Saudi Arabia,” said Haddad. King Salman bin Abdulaziz succeeded King Abdullah on the throne in Saudi Arabia.
In the Gulf region, Muscat Securities Exchange MSM 30 index ended flat at 6,644.92. while the Qatar Stock Exchange index ended at 11,836.07, down 0.10 per cent.
Fresh leads eyed:
Companies like Emirates NBD, and Dubai Islamic Bank posted better than expected results, but investors would look at first quarter results to see any transmission from falling crude oil prices on the real economy.
Dubai Islamic Bank, which was the most active stock in trade, ended 5.71 per cent lower at Dh6.6.
“These are last year’s numbers, people are still waiting for first quarter results and that would be main indication for markets for 2015 to see how these new numbers will come out, and that would trigger re-rating from analysts etc. Until then market would witness sideways movement,” said Haddad.
“If there is any increase in interest rates later in the year, so the investors want to see how this could impact on the numbers,” said Haddad.
Investors have been preferring to stay on the sidelines in the volatile markets.
“There is no interest from institutional and retail investors to enter the market even at attractive valuations,” said Haddad.
Volumes have been on the lower side so far in January. On Tuesday, DFM recorded volumes of Dh700 million as against a normal average of Dh1 billion.
