Oil at 2008-low jolts UAE, Saudi and Qatar equities

DUBAI INDEX FALLS TO A LOW LAST SEEN IN NOVEMBER 2014 AS MARKETS TAKE A BEATING

The Dubai index joined the sell-off along with other equity markets in the Gulf as oil prices, which tumbled to its lowest level in 2008, kept the sentiment depressed.

The Dubai Financial Market General Index closed 2.10 per cent lower at 2,882.80, after falling to a low of 2,851.24, a level last seen in November 2014.

“We were surprised by the sharp low opening in trade [on Sunday]. We are now in a situation where the traders are driven by technicals than fundamentals,” said Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.

“Fundamentals is that crude is slumping, and that’s bad for liquidity. Nobody really knows where crude will stabilise,” said Manibhandu. Crude has been under pressure shedding more than half of its value since last year on a supply glut.

Internationally too, markets were under pressure ahead of a rate hike from the US.

“Globally, markets were jolted by selling pressures amid rising worries that the oil slump, the commodities drop, and a possible rate hike by the US Fed may fuel a further slowdown,” Talal Touqan, attractive, although activity is expected to stay low until at least the 16th of December,” Talal Touqan, Head of Research and Advisory at Al Ramz Capital said. Oil has tumbled more than 50 per cent in the past year, triggering massive selling in local equities. fell, while shares of 2 firms rose.

“People are now looking for low levels, technicals are now pointing to 2,750 levels,” Manibhandu said, adding: “People should be able to ride the volatility, and if you are going to look at dividends in early 2016, you should be prepared to take some unrealised loss in the very short term.”

Abu Dhabi

Even the Abu Dhabi stocks were not spared yesterday’s sell-off. The Abu Dhabi Securities Exchange General Index closed more than 2 per cent lower at 4,000.71.

Dana Gas closed 2.65 per cent lower at Dh2.20, while Waha Capital closed more than 3 per cent lower at Dh2.07. RAK Properties closed more than 2 per cent lower at Dh0.46.

“The long term continues to be in a strong downtrend, currently supported by the 1.90 low that previously provided support in December 2014,” Menacorp said on Aldar Properties. The stock ended more than 2.5 per cent lower at Dh2.20.

Out of a total of 26 firms traded on the exchange, shares of 18 firms fell, while shares of other 6 firms rose.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 2.99 per cent lower at 6,741.03, while Qatar Exchange index ended 3.71 per cent lower at 9,643.65. Muscat MSM 30 index closed 0.66 per cent lower at 5,414.99.