UAE indices end higher as other emerging markets slide

Dubai: The UAE’s main equity indices ended in the green on Tuesday even as many other emerging market indices fell on tempered expectations of monetary easing from the US Federal Reserve.

The Abu Dhabi Securities Exchange (ADX) general index continued to inch higher post resistance levels after crossing the 5,000 psychological barrier two days ago. The index closed at 5,022.17, up 0.23 per cent.

Trade still concentrated around banking stocks, specifically Abu Dhabi Commercial Bank and First Abu Dhabi Bank, which gained 1.06 per cent and 0.41 per cent respectively. Etisalat’s share prices ended 0.12 per cent higher.

Meanwhile, the Dubai Financial Market (DFM) was almost flat, closing at 2,656.20, up four points (zero per cent). Most stocks ended the day higher, with blue chips Emaar and Dubai Islamic Bank still dominating trade values. Emaar gained 0.88 per cent while DIB slid 0.58 per cent.

This was as other emerging market stocks declined for the third day as their currencies also weakened on expectations of a stronger US dollar. The UAE’s dirham, however, is more aligned with the performance of the dollar as it is pegged to the US currency.

In China, the Shanghai Composite slid again by 0.17 per cent as the Hang Seng dropped 0.76 per cent. This followed a strong payroll report released in the US on Friday that lowered hopes of an interest-rate cut from the country’s central bank at the end of this month.