Dubai
UAE indices revived its co-relation with global markets after a gap down opening and recovering partly by the end of end of trade following similar moves in Dow Futures.
Up until last year, the local markets had ignored positive leads from global markets and oil, resulting in only 5 per cent gains in Dubai index compared to a 30 per cent rise in the Dow Jones Industrial Average.
The Dubai Financial Market General Index hit a low of 3,281, before closing 1.53 per cent lower at 3,326.47. The index has shed more than one per cent in the last two trading sessions.
“If there is further meltdown in global markets, then we may see further risk appetite coming down from a low level,” said Muhammad Shabbir, head of funds and portfolio, Saudi Kuwait Finance House, a unit of Kuwait Finance House. “Investors are anyway not ready to risk in this part of the world due to difficult economic conditions and prevailing uncertainty and that can be seen in traded volumes,” Shabbir said.
Stocks like Emaar Properties, Emaar Development, Emaar Malls witnessed a partial recovery in intra-day trade. Arabtec also recovered from the low of Dh2.64.
“Arabtec is trading bullish with immediate resistance at Dh2.85. A break over may extend the rally towards the next target Dh3.08 in the near term,” said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities.
In other stocks, Gulf Finance House closed more than 2 per cent lower at Dh1.43, while Union Properties closed 2 per cent weaker at Dh0.925. DP World closed 2.26 per cent lower at $25.90. Ithmaar closed 3 per cent lower at Dh0.831.
The Abu Dhabi Securities Exchange general index closed 0.9 per cent lower at 4,540.85. Aldar Properties fell 3 per cent to be at Dh2.2.
In other Gulf markets, Saudi Arabia’s Tadawul was 1.44 per cent lower at 7,478.16. The Qatar exchange index closed 2.11 per cent lower at 8,651.48.
