Dubai: The Dubai index, which see-sawed in early trade on Tuesday, snapped a three day gaining streak, ending more than 3 per cent lower led by Arabtec and Emaar Properties amid recovering crude.

The Dubai Financial Market General Index ended 3.44 per cent lower at 3,719.44, after moving in the range of 3,715.33-3,887.73. The index had gained more than 25 per cent in the previous three sessions.

Arabtec, which was the most active stock in terms of value, ended 4.61 per cent lower, while Emaar Properties, which corners the maximum weightage on the gauge, ended 5.87 per cent lower. On the broader Dubai index, out of a total of 35 shares traded on the exchange, shares of 27 companies declined, while shares of 5 companies rose.

“Market is driven by sentiment and momentum. People are still worried about where the oil prices might go and stabilise,” said Musa Haddad, equity fund manager at National Bank of Abu Dhabi’s asset management group.

Oil rose for the second time in three days before a report that may show the US economy expanded more than previously estimated last quarter. Crude is set for the biggest annual loss since 2008 amid the highest US output in more than three decades and signs of slowing global demand growth.

“Until oil prices stabilise, it is difficult to find how markets would behave, as there is a high co-relation with crude oil,” said Haddad.

The Abu Dhabi Securities Market General Index ended 0.19 per cent lower at 4,470.15. The gains were led by banks. Agthia ended 9.73 per cent lower, while Ras Al Khaimah Ceramic closed 6.75 per cent lower.

Out of a total of 28 companies, shares of 8 companies rose, while 18 of them declined.

Volatility to continue:

“Volatility would continue. If there is high volatility, then markets can go in any direction,” said Haddad. The market has witnessed huge volatility due to similar movements in crude oil, triggering huge volumes.

“We saw good volumes on the upside, and it was driven mainly by retail. Markets at this point in time are more for short-term traders, that go in and out of the market,” said Haddad.

However, analysts feel long-term investors can invest at current levels.

“On a fundamental basis, market is looking very attractive on a long-term basis because we were trading around 18 multiples and now we are trading at around 12 times,” said Haddad.

“If you are a short-term trader, this market is not for you as catching a bottom is like a catching a knife,” said Haddad.

Elsewhere, Saudi’s Tadawul All Share Index ended steady at 8,546.7 ahead of the budget for next year.

The kingdom’s Al-Madina newspaper, quoting unnamed sources, said government spending was expected to be about 860 billion riyals ($229 billion) next year, up from a record 855 billion riyals in the 2014 budget plan — suggesting Riyadh sees no need to impose harsh austerity policies because of cheaper oil.