10/12/2014 20:33 AST
The Dubai index ended a choppy session flat on Wednesday after falling more than 6 per cent in the previous session. The Abu Dhabi index, however, ended a tad higher.
The Dubai Financial Market General Index ended 0.15 per cent down at 3,882.90, after moving in a range of 3,834.96-3,954.05. The index had shed more than 6 per cent on Tuesday.
“So far, the UAE markets had been pretty resilient compared to MENA markets, and on Tuesday had suffered. It’s difficult to say if the markets have stabilised, but going ahead the equity markets will be driven by oil,” Sebastien Henin, head of asset management at The National Investor.
Brent crude fell, trading near a five-year low as an Iranian official predicted a further decline in prices if solidarity among Opec members falters.
Brent collapsed 15 per cent since Opec agreed to leave its production ceiling unchanged on Nov. 27, resisting calls from members including Venezuela to cut output to stabilise prices.
Real estate developer Arabtec gained 2.35 per cent to end at Dh3.48 per share, making it the most actively traded stock in trade. Emaar Properties ended down 0.87 per cent to be at Dh7.95 per share.
Investors were not willing to sell shares of Dubai Parks and Resorts, which lost as much as 15 per cent in trade.
“People were not panic mode to sell Dubai Parks today and more comfortable to keep the name in the portfolio,” said Henin.
Technical rebound?
“We have lost a lot from the recent highs. We will have a technical rebound and the question is when,” said Henin.
The Dubai index hit a low of 3,760.90 on Tuesday, the level last seen in early February. Out of a total of 32 shares traded on the exchange, shares of 15 companies declined, while shares of 14 companies rose.
Elsewhere, the Abu Dhabi Securities Market General Index ended 0.36 per cent higher at 4,582.91. Out of a total of 29 companies, shares of 13 companies rose, while 10 of them declined.
The Tadawul All Share Index ended 2.48 per cent lower, while the Kuwait Stock Exchange Index ended 0.43 per cent lower. The Qatar index ended 0.11 per cent weaker.
The Muscat Securities MSM 30 index ended 0.71 per cent lower. Outside the Gulf, Egypt’s market slipped 0.83 per cent as most property stocks pulled back after several strong sessions. Up 40 per cent year-to-date, the market is now the top performer among major Middle East bourses.
Gulf News
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