UAE benchmarks decline as global sentiment weighs
THE DUBAI INDEX FELL 0.27% TO 4,103.49, WHILE ABU DHABI WAS DOWN 0.19%
The Dubai index edged lower yesterday even as crude oil continued to make new yearly highs. The Abu Dhabi index also ended a tad lower. The Dubai Financial Market General Index ended 0.27 per cent lower at 4,103.49, after gaining more than 1 per cent in the previous session.
“The bigger concern is coming up from international markets at the moment where we have seen bond yields moving up,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.
Brent crude oil headed towards 2015 highs above $68 a barrel after official data showed the first drawdown in US crude inventories since January, evidence the market there is balancing after months of heavy oversupply.
Prominent losers
Gulf Finance House ended 3.14 per cent lower at Dh0.821, while Dubai Investment ended 0.32 per cent lower at Dh3.12. Damac Properties ended 3.11 per cent lower at Dh3.12. However, Arabtec ended 1.55 per cent higher at Dh2.62.
Tabreed ended at an upper circuit, closing 15 per cent higher at Dh1.40.
Tabreed said it would ask shareholders for approval to buy back 28 per cent of convertible bonds held by its largest shareholder Mubadala. Out of a total of 36 stocks traded on the exchange, shares of 22 companies fell, while shares of 9 companies rose.
The Abu Dhabi Securities Exchange General Index also ended 0.19 per cent lower at 4,557.30. Losses were led by financial services and real estate firms.
“The Abu Dhabi index may consolidate in the current range as it is more stable than Dubai index,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts.
Eshraq Properties ended 3.26 per cent lower at Dh0.89, while Aldar Properties ended 0.37 per cent lower at Dh2.66. Dana Gas ended 4.26 per cent lower at Dh0.45.
Out of a total of 26 companies traded on the exchange, shares of 14 companies fell, while shares of 10 companies rose.
New resistance
Saudi Arabia’s Tadawul index ended 0.65 per cent lower at 9,717.9 on Thursday after Yemen’s government called for military intervention on the ground. “I still see new high above resistance level of 10,141 by this month,” Al Ashri said.
Saudi Basic Industries (Sabic) may hit a new resistance at Dh120 in this quarter, said Al Ashri. Sabic ended 0.52 per cent lower at 106.75 Saudi Riyals. Alinma Bank ended 0.37 per cent lower at Dh24.20.
Elsewhere in the Gulf, Qatar Exchange Index ended 0.42 per cent lower at 12,282.17, while Muscat Securities MSM 30 index ended 0.55 per cent lower at 6,317.66. Kuwait Stock Exchange Index ended 0.30 per cent lower at 6,396.96. Bahrain Bourse All Share index ended almost flat at 1,390.26.