Dubai:
Falling oil prices, which hit the sub-$50 per barrel mark last week, made traders in the UAE risk averse. The Dubai index fell on Sunday, extending losses for another session.
“With the break out now below $50 mark, we saw selling pressure on bluechips and the index overall,” said Marwan Shurrab, head of high net worth and retail equity brokerage, Al Ramz.
The Dubai Financial Market General Index closed 1.12 per cent lower at 3,480.92, while the Abu Dhabi Securities Exchange General Index closed 0.47 per cent lower at 4,436.43.
Mainly, oil, from which the majority of the regional governments get their revenues from, dictates the movements in the UAE and other regional stock markets.
In stock specific movement, Emaar Properties closed 1.36 per cent lower at Dh7.24. Aramex fell 1.82 per cent lower at Dh5.40.
Dubai Investments closed more than 6 per cent to be at Dh2.32.
However, specific stocks like Shuaa performed well. Shuaa Capital closed more than 14 per cent lower at Dh1.87. Gulf Finance House closed 2.39 per cent higher at Dh2.57.
Out of a total of 36 stocks traded on the exchange, shares of 17 firms fell, while other 12 rose. The rest remained steady.
In Abu Dhabi, etisalat closed 0.56 per cent lower at Dh17.75. First Gulf Bank closed 0.79 per cent lower at Dh12.50. Abu Dhabi Islamic Bank closed 1.27 per cent lower at Dh3.90. Aldar Properties closed 1.27 per cent lower at Dh2.34.
“There are always opportunities for trading that benefit from the volatility in the market,” Shurrab said.
Elsewhere in the region, the Saudi Arabia’s Tadawul index closed 1.20 per cent lower at 6,834.06. The parallel index 2.73 per cent lower at 5,506.95. The Qatar exchange index closed 0.32 per cent higher at 10,491.15.
Traders will look at US Federal Reserve meeting for hints.
The US Federal Reserve officials is due to meet later in the week, and analysts expect the first rate hike in the year.
