Muted action in UAE stocks even as Saudi Arabia sees declines

Dubai

The UAE’s main stocks indices fell around 0.5 per cent each even as stocks in Saudi Arabia sank after a large oil processing facility in the Kingdom was attacked by drones.

The Dubai Financial Market (DFM) index closed 0.64 per cent lower, at 2,869.84, while the Abu Dhabi Securities Exchange (ADX) general index slid 0.44 per cent to 5,073.86. Trade values were also low on each of the bourses, with little changes in the share prices of the blue chip stocks.

The sideways movement in the UAE comes at the start of what will be an eventful week for financial markets globally, with investors keeping an eye on oil prices after the attack in Saudi Arabia. Investors will also be monitoring the rhetoric of the US Federal Reserve, which is expected to cut interest rates again by 25 basis points this week.

“What comes next is more important,” said Charles-Henry Monchau, managing director of investment management at Al Mal Capital. “The markets could react negatively if the Fed doesn’t make it clear that it plans to cut rates again.”

In the UAE where the dirham is pegged to the dollar, the central bank is likely to follow suit in cutting interest rates.