Dubai index falls again, Tadawul bucks trend

TRADED VALUE AT DH202M IN DUBAI FROM DH300M EARLIER

The Dubai index extended losses for another session yesterday due to weakness in shares of Emaar Properties. However, Saudi Arabia’s Tadawul closed higher.

The Dubai Financial Market General Index closed 0.65 per cent lower at 2,912.62, after registering mild losses in the previous session. “Global Emerging Market Exchange Traded Funds are witnessing outflows and that is also impacting UAE, especially since liquidity is low during Ramadan,” Vrajesh Bhandari, portfolio manager with Al Mal Capital said.

Emaar Properties closed 1.16 per cent lower at Dh5.13 while Emaar Development closed 0.72 per cent lower at Dh5.53. Another heavyweight, Dubai Islamic Bank, closed 0.62 per cent weaker at Dh4.80. DP World closed more than 1 per cent lower at $22 (Dh80.74). Gulf Finance House closed 2.13 per cent higher at Dh1.44.

Traded value came in at Dh202 million compared to more than Dh300 million in the previous session.

The Abu Dhabi Securities Exchange general index closed 0.8 per cent lower at 4,431.71.

Abu Dhabi Commercial Bank closed 2.2 per cent lower at Dh6.67. Union Arab Bank closed more than 8 per cent higher at Dh1.3. Agthia closed 2.13 per cent higher at Dh4.8. Waha Capital closed at Dh1.75, up more than 1 per cent.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.69 per cent higher at 8,013.42, bucking a weak regional trend.

Higher oil

“We think the Saudi market has consolidated nicely and as we move closer to the MSCI announcement date, Tadawul can begin the next move up on the back of higher oil prices as well as limited noise on the geopolitical front,” Bhandari said.

Saudi Basic Industries Corp closed 1.1 per cent higher at 117.40 riyals. Al-Ahlia Insurance Co closed more than 7 per cent higher at 11.26 Saudi riyals, while Alinma Bank closed more than 1 per cent at 20.42 riyals. Etihad Etisalat Co closed 4.24 per cent higher at 18.68 riyals.

Among the losers in Saudi Arabia, Saudi British Bank closed 3.59 per cent lower at 30.85 riyals. “Quarterly results were in line with expectations — banks and petrochemicals fared well. On the other hand, most consumer, retail, health care and industrials names reported weak results which corroborates our view that consumer spending is under pressure on the back of value added tax implementation and increased cost of utilities and expat levy,” Bhandari said.

Saudi’s Tadawul index has been the best performing regional index with 10.97 per cent returns, compared to 13.57 per cent losses on Duabi index.

The Qatar exchange index closed 0.66 per cent lower at 8,891.16 while the Muscat MSM 30 index closed 0.67 per cent lower at 4,617.71.