Dubai: The Dubai index fell more than 1.5 per cent on Thursday, to hit its lowest level about three weeks due to weak overnight leads from crude oil. Most other indices in the Gulf also fell.
The Dubai Financial Market General Index ended 1.66 per cent lower at 3,674.40, after hitting a low of 3,653.79, a level last seen in early January.
“The volatility is still high. The co-relation with international markets volatility is causing the market here to trade lower,” said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings, adding “this impact could be also seen on lower turnover in markets.” Volumes came in at about Dh460 million as against Dh2 billion last month.
“I would say the volatility and fears of correction in international markets along with fears of any negative surprises on earnings announcement are keeping investors away from the markets,” said Shurrab.
Emaar Properties fell 2.90 per cent in trade to end at Dh6.70, making it the most active stock in trade, while Arabtec, which was the second-most active stock in terms of value, fell 3.65 per cent to end at Dh2.90.
Elsewhere in Abu Dhabi, the index ended 0.83 per cent lower at 4,478.49, despite strong bank results.
“Results have been mixed so far. Results from banks have been positive and we have seen good dividends from them, so that’s why we have seen good performance in banks so far in the year,” said Shurrab.
National Bank of Abu Dhabi ended the trade 5.51 per cent lower at Dh12.850, even after posting a 28 per cent increase in fourth-quarter profit. NBAD’s net income climbed to Dh1.37 billion from Dh1.08 billion.
First Gulf Bank ended 0.87 per cent at Dh17 even as it reported a 15 per cent rise in net profit. First Gulf Bank reported a net profit of Dh4.77 billion in the December quarter, from Dh4.15 billion in 2012. In the fourth quarter of 2013, net profit grew by 19 per cent to Dh1.37 billion from Dh1.15 billion in the fourth quarter of 2012.
Saudi index also falls
Saudi index also fell on Thursday after posting rallied 5.8 per cent in the three trading days since Friday.
The Tadawul All Share Index provisionally ended 0.38 per cent lower to be at 8,878.54.
Yanbu National Petrochemical Company ended at 47.60 Saudi Riyals, down 4.74 per cent, while Mobile Telecommunications Company Saudi Arabia ended 3.38 per cent lower at 7.15 Saudi Riyals.
Elsewhere in the region, Qatar Exchange Index ended 0.68 per cent lower at 11,899.63, while Muscat Securities MSM 30 Index ended 0.39 per cent lower at 6,558.46. Kuwait Stock Exchange index ended 0.97 per cent lower at 6,572.26.
