Dubai index ends flat as investors eye crude oil

Emaar Properties gained 1.36 per cent to end at Dh8.95 after losing 19 per cent last week

07/12/2014 21:04 AST

The Dubai index ended flat on Sunday, and analysts said investors would continue to eye the movements in crude oil for direction. The Abu Dhabi index, however, ended higher.

The Dubai Financial Market General Index ended 0.02 per cent lower at 4,170.19, after trading in the range of 4,123.62-4,199.65.

“We would continue to see some volatility due to oil prices. From here on, crude oil prices would dictate sentiment of retail investors,” said Rami Sidani, head of investments in the Middle East, Schroders.

On Friday, Brent for January settlement fell 57 cents to end at $69.07 per barrel, the lowest close since Oct. 7, 2009.

Futures slumped 18 per cent last month as the Organisation of Petroleum Exporting Countries maintained its output target, letting prices decrease to a level that may slow U.S. production growth.

Saudi Arabia’s Oil Minister Ali Al Nuaimi resisted calls from Opec members to trim production at a Nov. 27 meeting in Vienna. The group has maintained an official target of 30 million barrels a day since January 2012.

Among the most active stock in terms of value was Emaar Properties, the real-estate developer that accounts for about 20 per cent of Dubai’s gauge.

Emaar Properties gained 1.36 per cent to end at Dh8.95 after losing 19 per cent last week. Dubai Islamic Bank gained 0.42 per cent to end at Dh7.13, while Air Arabia closed 0.65 per cent lower at Dh1.53.

On the broader index, out of a total of 32 shares traded on the exchange, shares of 17 companies declined, while shares of 12 companies rose.

The Abu Dhabi Securities Market General Index ended 0.32 per cent higher at 4,717.07, bucking the negative trend in the region. The gains were led by banks. First Gulf Bank rose 0.84 per cent to end at Dh18, while Abu Dhabi Commercial Bank gained 1.30 per cent to end at Dh7.03.

Out of a total of 29 companies, shares of 13 companies rose, while 9 of them declined and the other 7 remained steady.

Gulf News