Dubai: Local markets ended the week on a sour note just as global investors grew more wary of a row between China and the United States over Hong Kong and how it diminishes the chances of them striking a truce this year.
The Dubai Financial Market (DFM) index fell 0.7 per cent at 2,684.28 points, while Abu Dhabi’s ADX shed 1 per cent to 5,041.73 points. Dubai bourse’s main index was weighed down by real estate blue-chip Emaar Properties, which fell 1.5 per cent, while top lender Emirates NBD declined 1.2 per cent.
Global stocks slid further on Thursday, adding to previous day’s declines, after a report that Washington and Beijing are unlikely to reach a trade deal this year. Also, US President Donald Trump was seen likely to legislate a bill which warns China against violently suppressing the protests in Hong Kong, turning up the heat between the world’s top two economies.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.1 per cent to a near three-week lows, with Hong Kong’s Hang Seng tumbling 1.6 per cent.
“The global lead is negative and we are seeing foreign investors selling in the UAE. There is a MSCI rebalancing next week which should result in outflows,” said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.
“We think markets should catch a bid post the Aramco IPO as investors position for next year. Dividend announcements, bank NPL’s, off plan sales figures (for real estate companies) and focus on Expo should drive the markets,” Bhandari added.
Saudi Aramco is planning meetings with Dubai investors next week, Reuters reported earlier, after the oil giant called off roadshows in New York and London this week.