Dubai: The Dubai Financial Market (DFM) general index survived the massive global sell-off even as Saudi Arabia’s Tadawul All Share Index dived more than 3 per cent on falling oil prices.
The Dubai index ended 0.70 per cent lower at 2,733.45, while the Saudi index fell as much as 3 per cent.
In the UAE capital, the Abu Dhabi Securities Exchange (ADX) general index closed 1.54 per cent lower at 5,146.13.
“The Dubai index is not seeing the same movement like the rest of the world. If you look at the Dubai index, we didn’t go up much when the rest of the world recovered. It wouldn’t make sense for our markets to retreat as we didn’t participate with the recovery,” Menacorp’s senior financial analyst Issam Kassabieh told Gulf News.
In stock-specific movement, bellwether Emaar Properties closed 0.64 per cent lower at Dh4.69 despite strong results while Dubai Islamic Bank fell 1 per cent to Dh5.14.
Insurance stocks turned sideways after witnessing a surge in the previous session. Salama Insurance closed 4.15 per cent lower at Dh0.50 while Dar Al Takaful retreated 7 per cent to close at Dh0.60.
The Dubai index, which has not been tracking global peers, gained slightly less compared to the recovery in the overseas markets since January, advancing 8.05 per cent since January 1, compared to the Tadawul’s 15.3 per cent jump.
“Going ahead, there is a limited downside left in the index itself,” Kassabieh said. “Plus I think the focus is on [the] property sector and the boom that is expected post Expo 2020.”
On the ADX, Abu Dhabi Islamic Bank touched an intra-day high of Dh4.79 before ending the day 0.21 per cent higher at Dh4.72. First Abu Dhabi Bank fell 2 per cent to close at Dh15.64 while Abu Dhabi Commercial Bank eased 1.15 per cent to Dh9.45.
The Tadawul recovered from its lowest point, bouncing back from an intra-day low of 8,866.78 nearing its 50-day moving average to close 2 per cent on the day at 8,993.34.
“There are more reasons for [the] Tadawul to fall other than [US President Donald] Trump’s tweets. It’s Ramadan and people would want to take some profits after the second tranche of FTSE inclusion,” Kassabieh said.
Analysts expect any slide in the Tadawul index to be a buying opportunity. The index has shed more than 4 per cent since Sunday.
Saudi Basic Industries Corp closed 1 per cent at 121 Saudi riyals.